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Options markets are gearing for.........>

EURO-DOLLAR
EURO-DOLLAR: Options markets are gearing for what's expected to me one of the
most eventful ECB rate decisions in recent months, with markets clearly eyeing
the prospect for a more protracted leg lower in the single currency. EUR/USD
overnight implied volatility has surged, rallying north of 12 points and blowing
out the breakeven on an overnight straddle to around 57 pips, over twice that of
the 24 pips for the equivalent contract yesterday. This sees vol markets pricing
in the largest one-day move for EUR/USD since the US mid-term elections in early
November last year.
-Options markets hedging against further EUR/USD downside, with close to $2
trading in puts for every $1 in calls so far today. Vanilla put strikes at
$1.1150, $1.1050 and $1.1000-05 have proved the most popular.

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