USD/CNY: options are pricing CNY rally for the first time since Aug. 24

The one-month 25 delta USD/CNY risk reversals (CNY1MRR) are currently trading at -0.15 in favor of puts (bearish bets) – the level last seen on Aug. 24.

The negative print indicates the demand or implied volatility premium for the put options is higher than that for calls.

Notably, risk reversals were trading at 0.175 in favor of calls (bullish bets) on Friday, meaning the options market has turned bearish on the USD/CNY pair  (bullish on CNY) in just three days.

CNY1MRR