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Currency hedging markets playing catch-up...>

OPTIONS
OPTIONS: Currency hedging markets playing catch-up from the quiet session
Monday, but GBP/USD options trading is still highly active. Turnover in GBP/USD
options is more than double the average for this time of day, with the put/call
ratio favouring downside protection - but only just. One of the more interesting
GBP hedges trading this morning was consistent with a Gbp412/304mln
$1.2150/1.2500 put spread - a trade that would break even on a move below
~$1.2490.
- Short-end GBP/USD vols are well bid, with implied vol tenors from 2w out to 1m
all hitting levels not seen since the last Brexit 'deadline' in March this year.
- USD/CNY, EUR/GBP and USD/TWD options markets are also more active than usual
early Tuesday, while USD/JPY and EUR/USD are quieter. This is reflected in
futures volumes, with GBP, CNY and NZD the most active while broader markets
remain muted.

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