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Currency hedging volumes are humming........>

OPTIONS: Currency hedging volumes are humming along broadly inline with average,
with better activity in USD/CNY and USD/JPY following range breakouts in spot
compensating for lower volumes in EUR/USD and GBP/USD. The sour risk sentiment
present in global asset markets this week has reflected further in implied vol
measures Thursday, with 1m tenors higher across DMFX and EMFX with only a few
notable exceptions. NOK and ZAR vols have retreated slightly with the passing of
the Norges Bank rate decision and the South African general elections.
-USD/KRW markets remain acutely volatile in both spot and options space. USD/KRW
added to recent gains Thursday, closing up at 1179.60, the highest rate since
early 2017 and closer to the spate of 1,185 call strikes that traded following
poor South Korea GDP data a few weeks ago.
-After a quieter start to the week for CHF (JPY gained markedly in the first few
sessions of the week, while CHF didn't), USD/CHF vols have begun to pickup and
the 1m is now trading just 0.3 points shy of the late April highs.
MNI London Bureau | +44 203-865-3809 |
MNI London Bureau | +44 203-865-3809 |

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