Echoing the sentiment in futures markets,...>

OPTIONS: Echoing the sentiment in futures markets, options volumes sit well

below average early Monday, with USD/CNY and USD/JPY markets particularly muted.

Implied vols are generally lower across DMFX, although GBP 1- and 3-month

contracts are inching higher after retreating for the past few sessions. Similar

patterns are seen across Asia-Pac FX as consolidating spot rates drain realised

vol.

-Downside GBP hedges are better bought, with over $2 in puts bought for every $1

calls so far Monday. $1.20 put strikes have drawn the most interest, but some of

the larger trades crossing have been vol hedges: shortly after the GDP release a

Gbp50mln 1-month 1.2335 straddle crossed.

-The recent run higher in AUD/USD has also helped stimulate further AUD hedging,

with volumes sitting slightly higher than average for this time of day. Again,

volatility hedges have been the theme, with large straddles trading with 0.6875

and 0.6876 strikes and 1-month expiries.