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FX Options Markets Muted Pre-Powell, But Some Activity Hotspots

OPTIONS

Currency options activity sits slightly quieter than average for this time of day, with more muted trade in EUR/USD and AUD/USD options largely responsible. As is the case in futures volumes, JPY, CNY and INR markets are busier.

Front-end implied vols across G10 are a touch higher, but well within ranges ahead of Fed's Powell later today. AUDUSD 1m implied is recovering a little after touching a one-month low overnight.

USD/JPY downside protection has been in demand this morning, with $4 in puts trading for every $3 in calls. Y104, Y105 and Y105.50 put strikes have drawn the most attention, although there has also been demand for call strikes layered between Y106.50-55.

In INR, markets have sought USD/INR downside exposure, with 72.50, 73.00 and 73.75 puts.

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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