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Decent FX hedging/options volumes so far....>

OPTIONS
OPTIONS: Decent FX hedging/options volumes so far Tuesday, with busy GBP/USD,
USD/JPY and EUR/GBP markets propping up overall activity and making up for
EUR/USD, USD/CNY pairs which are far more quiet. DMFX vols are generally higher
across 1m tenors, with GBP/USD seeing the most marked move (up 0.7 points to 8.1
points) as vols look to retrace the big post-election downtick on Friday and
begin to look ahead to the probable new EU exit date on Jan 31st.
- Today's GBP/USD put/call ratio is somewhat non-directional, with decent
interest in $1.3250, 1.3300 and 1.3400 call strikes countered by similar demand
for downside exposure via 1.3070, 1.30 and 1.2975 put strikes.
- This somewhat contrasts with EUR/GBP today, for which there's been strong
demand for downside protection via puts thanks to firm interest in strikes
layered between 0.79 and 0.84, with most trades crossing consistent with
shorter-dated put spreads rolling off in mid- or late-March 2020.
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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