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Currency hedging volumes currently..........>

OPTIONS: Currency hedging volumes currently humming alongside average so far
Monday, with shortfalls in USD/JPY and USD/CNY activity being countered by
better sessions for USD/TWD, GBP/USD and USD/KRW. Implied vols are generally
higher globally in the 1m space, with EUR/USD and GBP/USD vols adding 0.3 and
0.5 vol points respectively. In fact, the GBP/USD vol term structure has
flattened out to 1 year so far this morning (although not considerably so).
-Asia-Pac FX option vols are again a hotspot, with USD/KRW and USD/TWD well
ahead of average, following the moves in spot, where TWD and KRW have
strengthened materially over the past week. While last week KRW and TWD calls
were in vogue, trade so far this week has been far more balanced, with put/call
ratios for both pairs broadly flat. USD/KRW puts at 1,150 have again proved
popular, while 31.35 USD/TWD calls have drawn focus.
-Meanwhile, EUR/USD risk reversals continue to improve (extending the moves seen
post-Fed), leaving the measure close to touching the best levels since early

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