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Thursday has been likely the quietest.......>

OPTIONS
OPTIONS: Thursday has been likely the quietest session of the week so far for
currency hedging volumes after a decent few sessions of activity. Better volumes
in USD/CNY, USD/HKD and EUR/CHF options markets hasn't managed to counter
quieter trade in USD/JPY, EUR/USD and USD/CAD.
-Implied vols are mixed in the short-end, with USD/JPY and GBP/USD near-term
vols elevated while AUD/USD and USD/CAD vols retreat. Nonetheless most vol term
structures look elevated across the one- to six-month tenors, with GBP/USD vols
holding well above 8.5 points as lawmakers continue to talk up the likelihood of
a parliamentary showdown to fight for/against a disruptive No Deal Brexit.
-Markets are still still weary of further fallout from the protests in Hong Kong
and the resulting effect it could have on exchange rates, with 7.85 call strikes
bought in size in US hours. Call options traded today with strikes at or north
of 7.85 amounted to $1.25bln, with some trades expiring as soon as the 28th
August. The structures likely look to take advantage of any increase in vol
across the next two weeks. USD/HKD trading was well ahead of average, with
notional changing hands over twice the daily average.

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