Free Trial

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
MNI London Bureau | +44 203-865-3809 |
MNI London Bureau | +44 203-865-3809 |

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.