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Healthy Demand for GBP Upside Protection

OPTIONS

Healthy uptick in GBP FX options activity so far Thursday, with both GBP/USD and EUR/GBP seeing much higher-than-average volumes for this time of day.

  • GBP upside hedging has been the theme, with a cluster of call options with 1.39, 1.4030 and 1.4060 strikes crossing throughout late Asia-Pac and early European hours.
  • Similarly in EUR/GBP, 0.8600 and 0.8550 put strikes have traded in decent volumes throughout the morning.
  • The demand for GBP upside coincides with front-end vol looking to have hit bottom, with the 1-6m end of the vol curve recovering off post-COVID lows in recent sessions.
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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