EUR: FX Exchange traded Option

• Gross takeup: GBP931mln
• Net takeup: GBP506mln to GBP70.377bln (continuing the gradual increase in usage and a new record).

• Today’s FX session has been dominated by an extension of yen weakness following reports that PM Takaichi has expressed disapproval of plans for further BOJ rate hikes in the Feb 16 meeting with BoJ's Ueda. This comes amid the DXY index remaining steady around 97.80.
• Notably, this morning’s high in USDJPY (156.28) closely matched the initial resistance level at 156.29 (Feb 10 high) before spot has stabilised back towards current levels of 155.85. A continuation higher would highlight a stronger reversal and open 157.76, the Feb 9 high.
• Recent downside in USDCNY and USDCNH seems to be momentum-driven as USDCNH trades through prior year-to-date & cycle lows at 6.8810. Today’s yuan fixing was softer than expected in yuan terms, but the ‘error’ vs. the BBG survey median moderated vs. pre-LNY holiday levels, while the dollar index was firmer over that window.
• This may have meant that the market didn’t view this as meaningful pushback against current yuan levels on the part of the PBoC, allowing the initial contained yuan weakness to then meaningfully reverse through the Asia-London handover. USDCNH lows of 6.8725 represent the lowest levels since April 2023.
• US weekly ADP jobs data highlights the calendar, while FHFA house prices, Richmond Fed manufacturing, conference board consumer confidence, wholesale inventories, and the Dallas Fed services activity index are on the calendar.
• Fed's Goolsbee, Collins, Bostic, Waller, Cook and Barkin are scheduled to appear. BoE's Bailey, Greene, and Taylor will testify before the Treasury Select Committee, while SNB's Schlegel and ECB's Lagarde are also scheduled.

Latest block trade lodged at 10:02:08 London/05:02:08 NY:

• SFRH8-Z8 strip 2K blocked, looks bought.