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Currency hedging volumes sit well ahead.....>

OPTIONS
OPTIONS: Currency hedging volumes sit well ahead of average Monday, with better
volumes in USD/JPY, USD/HKD and EUR/USD countering lower levels of activity in
USD/CNY. Higher options volumes are mirrored in generally rising implied vols
across both DM and EMFX so far Monday, with the largest moves seen in AUD/USD
(ahead of the RBA rate decision Tuesday) and USD/CHF as the breakout in spot
drives hedging activity.
-Better USD/JPY options trading is being driven by put strikes, with well over
$2 in USD/JPY puts traded for every $1 in calls. Put strikes at Y107, Y107.50
and Y103.50 have drawn particular interest, with volatility bets also proving
popular. One of the more interesting trades crossing during Asia-Pac hours was a
$400mln Y107.65/109.00 strangle expiring in just 3 days, at Thursday's NY cut.
-USD/HKD volumes have surged with calls firmly in favour (call/put ratio sits
just under 2:1) with more pressure being placed on the HKMA's 7.85 band. Over
$500mln in 7.85 call strikes traded in early Asia/late Europe, rolling off in
one year's time.

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