Currency hedging volumes generally..........>

OPTIONS: Currency hedging volumes generally sitting slightly softer than average

for this time of day, with USD/JPY and USD/CNY activity in particular very soft.

EUR pairs have been far more active, with EUR/USD and EUR/JPY volumes much

higher than average for this time of day.

- Following the poor PMI data this morning, short-end vols across DMFX are

better bid, with particular upside seen in the GBP curve, with 1m vols higher by

close to 1 point to hit the highest levels since early April (and the original

Brexit deadline) this year. The contract will likely remain supported, with the

tenor already capturing the Brexit-focused EU summit and soon to capture the

Oct31 "Do or die" date also.

-Both EUR/USD upside and downside have traded in size today, with call strikes

layered between 1.1000 and 1.1050 in focus as well as  1.1092, 1.09 and 1.05

vanilla put options.

-In EUR/JPY, one of the more interesting trades to cross was consistent with a

decent downside bet: a E205mln Y115/Y117 put spread rolling off at end-November.

The structure breaks even on a move below roughly 117.90.