EQUITIES: US Cash opening calls

• +15,000 TYH5 110.5 calls, 16-17 ref 109-05 to -06

ERM5 98.12/98.25cs, bought throughout the day for half in 62.5k total now.

Said to be some positioning.

Bank of America note that “amid the focus on AI/Tech and the flurry of executive orders, the FX market remains primarily focused on tariff uncertainty.”

• “While tariffs were notably left out of the administration's "day 1" agenda, all indications point to some formal announcement on February 1. Nevertheless, the absence of something immediately concrete has sparked a mini-relief rally in G10 currencies, as the DXY has traded off its pre-inauguration highs.”
• “The USD's move has corresponded with signs of positioning unwinds. The faster-money CTA community appears to have moved more towards neutral USD positioning vs. EUR, GBP, AUD and JPY, though still net-long vs. the more tariff exposed CAD and MXN.”
• Meanwhile, their hedge fund data suggests “unwinds of long USD positions are underway, but overall net-long USD positioning remains. Investors view positioning as the top USD risk to start the year.”