Following yesterday's ECB decision, vols....>

OPTIONS: Following yesterday's ECB decision, vols have slipped further, with

tenors from one-month out to one-year all hitting fresh euro-era record lows.

The downside isn't contained to the single currency, however, with USD/JPY vols

also very much on the backfoot along with almost every other major currency

pair.

- Asia-Pac vols are contrasting with DMFX, with CNY, HKD and IDR vols holding up

well alongside the increased jitters stemming from the spread of coronavirus.

- Currency hedging volumes have ebbed slightly lower Friday after a busy week,

with USD/JPY and GBP/USD markets far quieter than they have been in recent

sessions. EUR-cross protection remains in demand though, with traders clearly

looking to lock-in low hedging costs.

- EUR downside protection has been in demand from the off (likely triggered by

the break of trendline support following the ECB decision yesterday). Put

strikes at 1.1290 and layered between 1.0985-1.1000 have drawn focus, with close

to $2 trading in EUR puts for every $1 in calls so far today.