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Currency hedging volumes broadly inline.....>

OPTIONS
OPTIONS: Currency hedging volumes broadly inline with average for this time of
day, with higher than usual activity in EUR/GBP and USD/INR options markets more
than compensating for low activity in EUR/USD and USD/CNY. Implied vols are more
mixed, with short-end EUR/USD, USD/JPY and GBP/USD vols a touch lower while
AUD/USD curve inches higher on Sino/US trade tensions escalating further
overnight. The recovery in USD/JPY spot back above Y107.00 has soothed vols
further - 1m retreated to ~7 points and near the lowest since the Coronacrisis
picked up in early March.
- Bullish INR structures crossed at the EU/US crossover, with sizeable
72.00/73.50/74.60 put structures trading with an early June expiry. Trades
follow a late recovery in both INR and local equities into the close, which
erased early losses.
- After BoE's Broadbent refused to rule out negative rates earlier today,
EUR/GBP calls have been favoured with 0.9035 strikes drawing the most interest.
Volatility hedges also crossed, with a E50mln 0.8740/0.8800 strangle eyeing a 1w
expiry in early NY hours.

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