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On Track For Another Particularly Busy Session in FX Options

OPTIONS

Wednesday's session saw the highest volumes in currency options markets since early November, with close to $100bln notional changing hands. Again today the market is highly active, with USD/CNY and AUD/USD options helping fuel volumes early Thursday.

Sizeable interest in AUD/USD upside protection has been noted throughout the Asia-Pac session, with 0.7950 and 0.8400 call strikes crossing with a mid-March expiry.

In vol markets, front-end implieds are generally lower, with the most sizeable drops seen in USD/JPY and GBP/USD contracts, although these remain in recent ranges.

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