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Currency hedging markets taking a modest....>

OPTIONS: Currency hedging markets taking a modest breather Thursday, with
overall volumes slipping slightly below the recent average. Higher volumes are
still noted in key Asia-Pac FX markets, with CNY, TWD and IDR all seeing high
levels of activity however volumes are lower among the majors, with JPY, EUR and
AUD lower.
-Short-end vols are seeing some relief, with most 1m measures modestly lower
across both EM and DM. Notable movers include AUD 1m vols, which have fallen
close to half a point after AUD spot recovered from the post-jobs data drop.
-GBP/USD vols are the exception, with implieds higher across the curve today as
spot fell below $1.28 for the first time since mid-February as May's Brexit deal
looks perilously close to being taken off life support. The confirmation that
Boris Johnson is to run as Conservative party leader (and therefore Prime
Minister) will have done little to soothe.
-USD/TRY vol markets have moved further in favour of TRY, with 1m risk reversals
retreating closer toward multi-month lows. Reflecting this, the entire vol term
structure trades lower on the week.
MNI London Bureau | +44 203-865-3809 |
MNI London Bureau | +44 203-865-3809 |

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