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Currency hedging volumes edging just........>

OPTIONS
OPTIONS: Currency hedging volumes edging just below recent averages Thursday,
with USD/JPY and EUR/USD activity sharply below average and not countered by
better volumes in USD/CNY and GBP/USD. Implied vols are generally higher across
DMFX, while Asia-Pac vols pull lower. USD/JPY 1m vols are recovering after
dropping for several sessions from cycle highs hit in early May. 
-GBP/USD hedging volumes sit ahead of average, with May's precarious leadership
position and today's cycle lows in spot helping to prop up activity. Downside
GBP/USD exposure has been in demand, with over $2 in put notional trading for
every $2 in calls so far Thursday. One of the larger trades crossing in the NY
crossover was a Gbp408mln 1.20/1.25 put spread rolling off in just over 2
months.
-TRY markets have been busy also, with USD/TRY spot climbing to the best levels
of the week. Volatility trades have been popular, with a $340mln 5.434/7.867 3m
strangle crossing late in the European morning. Demand for vol trades coincide
with the uptick in 3m vols today, with the contract climbing back toward 23
points.

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