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Currency hedging markets are slightly.......>

OPTIONS
OPTIONS: Currency hedging markets are slightly quieter today after a busier
session Monday. Lower options volumes across EUR/USD, USD/JPY are keeping
volumes anchored, although USD/CNY, AUD/USD and USD/TRY markets are far more
active. Implied vols are more mixed, but remain rangebound for now.
- Front-end AUD/USD vols appear to have bottomed for now after dropping to
multi-month lows at 9.3 points this week. The bottoming of vols coincides with
risk reversals pausing their recent incline - suggesting volatility of puts has
picked up slightly after falling sharply relative to calls in recent weeks.
- Demand for USD/CNY options was firm Monday after the surge in Chinese equity
markets, and that remains the case Tuesday, with USD/CNY put notional
outnumbering that of calls. 6.80, 6.95 and 7.00 USD/CNY put strikes have been
demand throughout Asia-Pac / European hours.

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