Short-end implied vols are generally........>

OPTIONS: Short-end implied vols are generally falling across both DM and EM

currencies so far Monday with GBP/USD the particular standout. GBP/USD vols are

retreating sharply, with the 1m measure falling to 10.4 points and well below

the YTD average of 11.4. This marks a sharp turnaround for GBP markets as

traders are clearly accepting the higher likelihood of a material extension (or

even a revocation) of Article 50 and therefore a delay to Brexit.

- The GBP/USD vol curve remains inverted, however, with 1w vols trading at a 3

point premium to 1m as, technically, the UK could be within five days of a

disruptive 'No Deal' Brexit if the EU fail to grant an extension at this week's

emergency EU meeting due on Wednesday.