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Hedging activity broadly in line with.......>

OPTIONS
OPTIONS: Hedging activity broadly in line with average so far today, with lower
than usual volumes in USD/JPY and AUD/JPY countered by higher volumes in
USD/CNY, EUR/USD and EUR/JPY.
USD/CNY trades seemingly triggered by the pullback in USD/CNH: after printing
highs of Cnh6.9586, the rate has dropped as much as 1.3% following reports that
China and US will resume talks to soothe trade tensions. Nonetheless, today's
put/call ratio of 0.71 suggests markets still see value in hedging against
further CNY downside in the near-term. The put/call ratio falls to 0.6 when
comparing call notional and put notional so far today. A number of USD/CNY call
trades eye 7.00 strikes expiring in early November, with 6.90 the second most
popular strike price for calls so far today, according to DTCC data.

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