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Following a busy start to the week,.........>

OPTIONS
OPTIONS: Following a busy start to the week, currency hedging volumes are far
more muted so far Thursday, with lower than average AUD/USD and USD/CNY activity
weighing on markets slightly. EUR/USD, USD/JPY and USD/INR markets, however, are
still running nicely.
- Front-end vols are mixed and largely non-directional, but most USD pairs are
seeing vols retreat as contracts price-out yesterday's Fed.
- Some decently-sized USD/THB options trade stand out, with a series of large
structures crossing in the Asia-Pac hours. Most trades were volatility hedges,
including a $70mln 30.40/31.40 strangle eyeing a mid-August expiry, but downside
protection was also evident throughout via put strikes layered between 30.30-60.
- Amid India's reopening plans, markets have favoured USD/INR upside exposure so
far Thursday, with over $2 in calls trading for every $1 in puts. 77.21 and
74.04 call strikes drew focus, possibly reflected in front-end INR risk
reversals finding bottom this week and inching higher.

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