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FX Options Markets See Healthy Volumes Post-Fed

OPTIONS
  • Demand for currency hedging products has been firm throughout the Asia-Pac and session and across the European morning. The initial weakness in the greenback post-Fed has helped boost appetite for USD/JPY, USD/CAD and USD/CNY this morning, with volumes well ahead of average.
  • USD/JPY's near-term uptrend has helped prompt sizeable interest in upside protection via options, with notional waged behind USD/JPY calls close to twice that trading in puts so far Thursday. 109.00, 109.50 and 110.00 call strikes have garnered the most attention ahead of the NY crossover.
  • USD/CAD's recent spell of weakness has helped fuel downside protection via puts, particularly as front-end vols remain subdued. The approach is typified this morning by a large 1.2375/1.2425 put spread, eyeing a May 6th expiry.
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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