FX options volumes largely following that...>

OPTIONS: FX options volumes largely following that of futures, with most majors

slightly quieter, but a few hotspots of activity. EUR/USD hedging activity is

slightly higher than usual for this time of day, but USD/JPY, USD/CNY and

GBP/USD are more muted.

-Implied vols are generally following this pattern, with the USD/JPY vol curve

seeing the largest moves (but off a very low base). Following yesterday's

decision from the Fed and today's decision from the BoJ, short-end USD/JPY vols

have bumped higher off multi-month lows, appearing to be led by USD/JPY puts,

which has put the 1m risk reversals contract under some pressure, dropping to 1

point in favour of puts at writing.

-GBP/USD vols remain in full retreat mode as the near-term risk of a disruptive

No Deal Brexit recedes almost entirely. 1m contract now sits at the lowest

levels since mid-September, while the 3m contract receives some support as it

captures the Dec12 election date.