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Implied Vols Trimmed Following Presidential Debate

OPTIONS

As has been the case since Monday, currency hedging markets are quieter than usual, with FX options turnover well below recent averages for this time of day. Particularly quiet EUR/USD and USD/CNY options markets are largely responsible, where activity has dropped despite the bounce in both the EUR and CNY spot since Monday's open.

Implied vol measures are trimming back this morning following the conclusion of the first Presidential debate, with front-end AUD/USD vols reverting back to the September average (1m now trades just above 10 points)

One slightly more interesting market today is EUR/GBP, in which a sizeable 0.9750 call (expiring Feb 19th '21 and thereby capturing the end of the transition period) and 0.9050 put trade is propping up overall volumes, which sit ahead of average so far Wednesday.

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