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An inline session so far for currency.......>

OPTIONS
OPTIONS: An inline session so far for currency hedging volumes, with busier
EUR/USD, USD/HKD and EUR/GBP markets countering quieter trade in USD/JPY and
USD/CNY. Despite the general stability of equities across the US, Europe and
Asia, vols have inched higher in the front-end for DMFX as markets look ahead to
this week's ECB meeting, key UK inflation, jobs and output data and the formal
beginning of US earnings season (financials this week, tech takes focus next
week).
- EUR/USD and EUR/GBP one-week vols hit new July highs Monday, with call vol
seemingly leading the way using risk reversals as a guide. EUR/GBP activity is
driving trade in the single currency, with turnover around twice the average for
this time of day. Activity has been led by calls, with 0.90, 0.94 and 0.9020
strikes drawing the most attention. Around $2 in calls have traded for every $1
in EUR/GBP puts today.

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