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

OPTIONS
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.

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