Cross accelerates losses having broken.....>

EURO-YEN: Cross accelerates losses having broken below the 2019 lows of 115.87.

More weight going through the single currency following the ECB's decision to

relax collateral rules late yesterday as well as the release of details of the

EU's recovery fund planning.

- Cross now sits at the lowest levels since 2017, with 114.85 now the key

support.

- In options space, the outlook is far rosier, with no real budge in skew since

the impressive recovery staged since mid-March. At the low on March 19th,

EUR/JPY 1m risk reversals traded at the lowest level (most in favour of put vol)

since the Global Financial Crisis at -8 points. This metric has recovered

sharply since to around -3 points, but is still well away from the levels seen

pre-COVID crisis.

- In today's trade, however, downside protection has been in demand from the

off, with well over 2 EUR in puts trading for every 1 EUR in calls. Put strikes

at 116.35, 115.40 and 112.00 have been in demand from the off.