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Despite dampened volatility so far today,...>

OPTIONS
OPTIONS: Despite dampened volatility so far today, options markets are strong
from the off, with overall hedging activity around 30% above average for this
time of day. While most major pairs are seeing decent interest, USD/RUB and
USD/KRW options are firmly in demand, although USD/JPY is also a busy market
today. As a result, front-end DMFX vols have inched higher, although remain well
within recent ranges.
- The uptick in interest for USD/RUB options has been driven by demand for 68.25
put strikes in a decent session so far for oil-tied currencies (aside - USD/NOK
is on track to record a tenth consecutive session of declines Monday).
Reflecting this, USD/RUB 1m risk reversals today have hit the lowest levels
since early March.
- USD/KRW volumes have been supported by 1,203.90 straddles, but downside
exposure has generally been favoured via put options so far Monday.
- Larger option expiries rolling off at today's 10am NY cut include EUR/USD:
$1.1230-45(E960mln), USD/CAD: C$1.3400($950mln), AUD/JPY: Y76.00(A$1.2bln)

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