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Options volumes lag slightly Wednesday......>

OPTIONS
OPTIONS: Options volumes lag slightly Wednesday with USD/JPY the main culprit as
lower demand for USD/JPY options counters better trading activity for EUR/USD
and AUD/USD hedges. 3m vols are generally declining across most DM FX pairs,
although USD/CNY 1m risk reversals have broken to the lowest levels of the
month, with bullish bets for CNY rising following yesterday's Bloomberg reports
of progress being made between the US and China in trade negotiations.
-AUD/USD calls have been in vogue from the off today, with vanilla call options
of significant size crossing the DTCC, including a A$344mln $0.7275 call strike,
rolling off in one month's time.
-Another notable options trade crossing Wednesday includes a USD/JPY
Y95.00/117.33 strangle for a total notional of over $500mln, due to roll off on
August 20 (6m trade).
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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