This week's MNI FX Options Monitor finds:....>

DOLLAR: This week's MNI FX Options Monitor finds:

ECB effect presses EUR/USD vols to nine-month lows:

The move saw implied vols slip below the mid-August 2018 lows to levels not seen

since April last year. For EUR/USD, the drop most acutely affected near-term

tenors, with implied vols from 1m out to 6m dropping close to 1ppt apiece.

Fragile risk sentiment reflected in USD/JPY hedging patterns

Some of the largest trades of the week have been bearish USD/JPY options

structures with put spreads and calendar spreads geared to profit on a move

lower in spot. The Bank of Japan rate decision this week highlighted to many the

lack of policy avenues left for the BoJ to conduct further easing, prompting

some to suspect that another leg of USD/JPY upside could be tough going.

GBP better positioned for a harmonious Brexit

The Brexit risk premium is still apparent as three-month contracts now begin to

capture the proposed EU exit date of March 29th. This risk premium may contract

further should developments in UK parliament remain positive.

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