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Currency hedging volumes pretty.............>

OPTIONS
OPTIONS: Currency hedging volumes pretty lacklustre across the board so far
Monday, with EUR/USD, USD/CNY and USD/JPY options trades crossing the DTCC well
below average. GBP/USD trades are slightly higher than usual, with GBP/USD
downside protection in demand from the off, despite UK PM Theresa May managing
to secure a Brexit withdrawal deal over the weekend. This demonstrates well the
market's expectation that her proposals will not get smooth passage through the
House of Commons in December, with markets eyeing positions that profit on a
move below $1.28, with put strikes also popular as low as the $1.20 level today.
GBP/USD risk reversals improved in favour of calls for a fourth consecutive
session Monday, however risk reversals remain well tilted sharply in favour of
puts across the curve for the time being. 
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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