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Options volumes in EUR/USD trading well.....>

OPTIONS
OPTIONS: Options volumes in EUR/USD trading well ahead of average Tuesday, with
the recent dip in EUR/USD spot rates clearly prompting many to attempt to lock
in the low price. EUR/USD puts are a touch ahead of calls on a notional basis,
with the largest trades of the session so far generally vanilla puts. One of the
more interesting trades crossing during Asia-Pacific hours was a 1.07/1.11 put
spread expiring at the end of May for a total notional of E459mln.
-Elsewhere, AUD/USD options markets have been busy following the dovish RBA rate
decision. One of the larger trades crossing overnight included a A$200mln
volatility bet: a 0.6910/0.7320 1m AUD/USD straddle.
-Implied vols are generally more sanguine today, with EMFX in particular
benefiting (BRL, KRW, ZAR and TRY vols are lower), although GBP vols remain well
elevated. GBP/USD 10d 1m butterflies still sit close to the post-referendum
highs printed on Mar25 at 1.37 vol points (trades 1.33 today).

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