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

OPTIONS
OPTIONS: Currency hedging volumes pretty lacklustre so far Monday (reflecting
the quieter spot markets across the board), however EUR/USD and GBP/USD trades
have picked up throughout the European morning. Despite lower options volumes,
implied vols are generally making their way higher, with the most marked moves
noted in GBP/USD and USD/CAD (rising 25bps apiece) and USD/BRL ahead of the BCB
rate decision, with the 1m measure rising to highest since late May.
-GBP/USD options trades have totalled more than twice the average usually seen
at this time of day. Trades are heavily biased toward puts, with over $3 in puts
crossing for every $1 in GBP/USD calls. Some of the more interesting trades of
the session so far include a Gbp301mln 1.22/1.25 put spread - a trade breaking
even at around $1.2475. Other levels of interest include put strikes at 1.25 and
1.2545.
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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