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

OPTIONS
OPTIONS: Currency hedging volumes are humming along inline with recent averages
so far Wednesday, with better activity in USD/CNY, USD/KRW and USD/CHF
countering quieter trade in EUR/USD, USD/TWD and USD/HKD. Implied vols are mixed
with no standout changes from yesterday's close among DMFX.
-Asia-Pac implied vols, however, have crept higher throughout the morning, with
sharp rallies in spot TWD and KRW helping nudge the measures higher - although
most hold well within recent ranges across the curve.
-EUR/USD options crossing have been fairly balanced between put/calls (no real
surprise ahead of the FOMC decision later) with the some of the more interesting
larger trades including a series of $1.20 EUR/USD calls rolling off in one
year's time.
-USD/JPY risk reversals saw a break higher in Asia-Pac hours, with USD/JPY 1m
risk reversals touching one month highs of -1.2775 points (USD/JPY calls over
puts) and continuing to stage a decent recovery from the lows seen in mid-May at
-2.15 points.

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