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The downtick in equity markets at the.......>

OPTIONS
OPTIONS: The downtick in equity markets at the open today and the reversal of
fortunes for risk proxy currencies has led FX option volumes higher today, with
busier USD/JPY, GBP/USD and USD/KRW markets countering quieter activity in
EUR/USD, USD/CNY and AUD/USD.
- Implied vols are generally bid across both EM and DMFX, with AUD/USD 1m adding
over 1 point today to hit new multi-month highs (of note, the contract will
tomorrow capture Australia's June jobs report).
- GBP options activity has been dominated by downside protection today, with
GBP/USD put $ volume outnumbering that of calls at a ratio of 6:1. Demand for
1.2450 and 1.2100 put strikes are the key drivers, with early September 1.21 put
strikes trading throughout the NY crossover. This has helped support GBP vols
today, with the 3m contract hitting a new June high today.
- Countering slipping global equities, USD/KRW downside exposure has also been
in demand from the off, with late Asia/early European hours seeing trades
consistent with a sizeable 1,165/1,190 put spread cross with an end-July expiry.
The structure would break even on a move below ~1,187 in spot.

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