The Fed's decision last night clearly.......>

OPTIONS: The Fed's decision last night clearly stimulating some hedging activity

today, with options volumes looking very healthy across EUR/USD, USD/JPY,

USD/KRW and many others. This is repeated across currency futures volumes, with

USD/JPY, EUR/USD and AUD/USD markets particularly active.

-Short-end vols have adjusted higher post-Fed, with 3m contracts going well bid

as they capture the September FOMC meeting at which they may cut rates further.

This is repeated across various currency pairs, helping 3m vols generally edge

to the highest levels since early April. 

-GBP vols continue to outstrip others, with 3m vols now sitting just shy of 12

vol points, the highest since late February. Vol remains highly correlated with

Bookie's take on No Deal risk, which sits close to multi-month highs of 33%,

according to OddsChecker.

-USD upside protection has been firmly in demand from the off, helping boost the

synthetic USD 1m risk reversal to multi-month highs. This is most evident in

EUR/USD, with downside puts popular throughout the morning, with put strikes at

$1.11, $1.10 and $1.09 in focus.