Another decent day for currency hedging.....>

OPTIONS: Another decent day for currency hedging volumes so far, with demand for

Asia-Pac FX hedges still strong and helping to prop up overall activity. Implied

vol markets are more mixed, with some softness in front-end implieds across

USD/JPY and GBP/USD, while EUR/USD vols inch higher on the recent breakout in

the spot rate.

- Upside exposure in USD/CNY has been firmly in demand from the off in a heavy

volume session, with just shy of $3 in calls trading for every $1 in puts. A

series of trades crossed in late Asia-Pac/early European trading hours eyeing

7.30 call strikes with expiries ranging from late-June to September 2020. Over

$850mln notional traded at that strike within a few hours. 7.20 call strikes

also proved popular, although to a lesser extent.

- Much focus Tuesday was paid to options positions trading that looked to profit

on a break below the 7.75-7.85 USD/HKD trading band and some of those themes

have carried through to the Wednesday session. Trading has been skewed towards

USD/HKD puts so far, with 7.75, 7.65 and 7.61 put strikes crossing in decent

size.