MNI's FX Options Monitor finds Antipodean...>

OPTIONS: MNI's FX Options Monitor finds Antipodean FX options volume surged this

week:

- AUD, NZD upside exposure in demand: AUD/USD call options were the notable

standout, which almost doubled in the space of seven days. The strong jobs data

posted Thursday spurred a series of very large call option trades.

- USD/JPY unlikely to test BoJ's implied tolerance band: The BoJ's warnings this

week appear little more than a shot across the bow, with a significant

deterioration in key G7 economies or a major flaring of tensions between the US

and China likely required to force markets to consider the prospects of the JPY

strengthening materially.

- Implied vols fall further still: Implied vols across most major currency pairs

fell further still this week, comfortably mimicking the very low levels of

realised vol across most major pairs. It's likely implied vols could fall

further for many major pairs (excepting GBP crosses), keeping premiums close to

the particularly low levels seen since the turn of the year.

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