Yuan Option Traders Brace for US-China Tension Lasting Into 2026

Escalating trade tensions between the US and China are spurring yuan traders to prepare for greater volatility lasting into early 2026.

Demand for dollar-offshore yuan option contracts, which can be used to hedge or speculate on the pair’s future movement, has grown after a volley of restrictive trade measures from both Washington and Beijing. Volumes on Tuesday were the largest in four weeks, according to The Depository Trust & Clearing Corporation data.