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Solid FX Options Volumes, Driven By Asia-Pac FX

OPTIONS

Another healthy session for DTCC currency options, with turnover ahead of average for this time day. Particularly active markets so far Wednesday include USD/HKD, EUR/JPY and USD/TWD. Implied vols are generally softer across both developed and emerging market FX.

The outstanding currency in vols is GBP, in which today's rally to new multi-year highs for GBP/USD spot has helped arrest the recent decline in short-end GBP vols from ~15 points in December to today's multi-month low of ~8 points.

EUR/JPY activity was driven by downside protection, with EUR/JPY put volume countering calls by $2.50 to $1. Y121.90 and Y124.75 put strikes have drawn sizeable interest.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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