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

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.