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As is the case in FX spot markets,..........>

OPTIONS
OPTIONS: As is the case in FX spot markets, options turnover sits lower than
average at the NY crossover, with muted CNY and EUR markets dragging down
overall volumes. Despite this, short-end implied vols are generally having a
better session across DMFX, with USD/CAD and GBP/USD posting the largest gains
in 1m space. EMFX vols are slightly more bid, with USD/MXN, USD/TRY and USD/KRW
all firmer to a decent degree.
-EUR/CHF options vols surged just ahead of the NY open, with substantial
downside position crossing: a two-month E220mln/E200mln 1.0775/1.1000 put spread
rolling off on September 20th. The trade would break even on a move below approx
1.0950.
-The weakness in GBP/USD spot has triggered further demand for GBP downside
hedges, with markets eyeing put strikes at 1.24, although a series of trades
have crossed that appear to be picking the bottom, with 1.25 and 1.2550 call
strikes also proving popular. EUR/USD and EUR/GBP 1-week vols trade with a
decent premium now they capture Thursday's ECB rate decision, hitting the
highest since early July and early June respectively.

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