A decent session so far for currency........>

OPTIONS: A decent session so far for currency hedging volumes despite the Friday

morning effect. While Asia-Pac (specifically CNY, HKD) options were in vogue

earlier in the week the busier currencies this morning are the majors, with AUD,

NZD and EUR/GBP hedging all well ahead of average for this time of day.

- In vol space, the pullback in continental equities has helped supported

front-end vols across DMFX, with EUR's outperformance also assisting. EUR/USD

vols inching back toward 7 points. The uptick in vol has clearly favoured EUR

calls, with EUR/USD 1m risk reversals now skewing in favour of calls over puts

for the first time since mid-March.

- EUR/GBP's range breakout today has failed to ignite much interest in further

EUR/GBP upside protection, with markets favouring puts with particular focus on

0.8975 put strikes, at which over E100mln options have traded at that strike.