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Currency hedging volumes are well ahead.....>

OPTIONS
OPTIONS: Currency hedging volumes are well ahead of average Thursday, with very
high trading activity in EUR/USD, USD/JPY and EUR/NOK countering the quieter
GBP/USD and EUR/GBP markets.
-Interestingly, despite the dovish Fed decision yesterday, EUR/USD puts have
been in vogue, with $1.70 waged on EUR/USD puts for every $1 in calls so far
Thursday. This is infitting with moves seen in risk reversals markets, with
EUR/USD 1m risk reversals edging back in favour of EUR/USD puts over calls and
erasing the entirety of the move higher post-FOMC yesterday. 1m implied vols
have ticked higher after touching the lowest levels since 2014 on Monday.
-Elsewhere, EUR/NOK options volume has surged since the rate decision this
morning with EUR/NOK puts in focus. One of the more interesting trades includes
a E440mln 9.15/9.45 put spread, expiring in late September (capturing the
September 19th Norges Bank rate decision, which the Bank today implied could see
a further rate hike).

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