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Currency hedging volumes running slightly...>

OPTIONS
OPTIONS: Currency hedging volumes running slightly below average so far
Thursday, reflecting the largely quiet spot market in DMFX. For a second
session, however, USD/JPY options trading is slightly ahead of average (by over
30% today), but EUR/USD, USD/CNY and AUD/USD markets are quieter.
-EUR/USD downside interest has been the theme from the off, with the notional
put/call ratio up at 1.75:1 so far Thursday. $1.1225 and $1.1200 put strikes
have been in demand with volatility bets also crossing. One of the more
interesting trades includes a $1.1175/1.1325 strangle expiring on Apr12 for a
total notional of E302mln.
-Elsewhere, USD/INR calls have been popular following the RBI rate decision this
morning, pointing to further rate cuts in the coming six months. Markets eye
69.15 and 69.60 call strikes, although the short-end of the USD/INR risk
reversals curve has barely budged.
-After garnering some attention a month or so ago as USD/HKD spot approaching
the tolerance band of 7.85, options volumes overnight were high, with focus on
what appeared to be a $400mln 7.8250/7.85 call spread expiring on May22.

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