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Currency hedging volumes humming along......>

OPTIONS
OPTIONS: Currency hedging volumes humming along nicely, inline with the
longer-term average so far Monday, with lacklustre trading activity in USD/JPY
and USD/CNY compensated nicely by better volumes for EUR/USD, EUR/GBP and
USD/HKD.
-EUR/USD options trades running ahead of average appears to be stemming largely
from a demand for put options so far Monday, with over 50% more total notional
waged behind puts than calls. This comes alongside EUR/USD risk reversals
falling further in favour of puts, with 25d 1m riskies falling to -0.4, the
lowest level for the contract since early December.
-While the decline in risk reversals across January came alongside falling
implied vols, the same isn't the case in early February, with implied vols
ticking higher five consecutive sessions. Interestingly, the shift in favour of
USD calls isn't replicated elsewhere, with USD/JPY, GBP/USD and USD/CNY risk
reversals broadly unchanged so far Monday.

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