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Lacklustre hedging volumes so far today,....>

OPTIONS
OPTIONS: Lacklustre hedging volumes so far today, with particularly low activity
in USD/JPY, USD/CNY and AUD/USD (all approx 50% below recent average volumes for
this time of the session). Options trades faring slightly better in EUR/USD with
just over E4.5bln notional traded so far. Vanilla EUR/USD puts the most popular
trade of the day, with 1.14 and 1.14 strikes in demand. The front-end of the
EUR/USD risk reversals curve continues to rally following the nadir in spot
prices early last week: 1m risk reversals now re-approaching the highest levels
since late July at 0.5 vol points in favour of puts on last check.
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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