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Italian political drama has clearly.........>

OPTIONS
OPTIONS: Italian political drama has clearly spurred options trading activity in
EUR/USD, with volumes so far today well over the average amount cleared in an
entire regular trading session: $14.5bln vs. $7.2bln average volume for this
time of day. The put/call ratio today of 1.7 shows downside protection is in
firm demand, reflected in the decline in EUR/USD 1m risk reversals, which
slipped back toward September lows earlier today.
Elsewhere, USD/JPY and USD/CNY options volumes are surging despite the Chinese
market holiday, helped by some volatility in USD/CNH spot this morning. AUD/USD,
USD/IDR and GBP/USD options volumes are faring slightly more poorly as spot
remains within recent ranges.

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