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Unsurprisingly, hedging volumes are.........>

OPTIONS
OPTIONS: Unsurprisingly, hedging volumes are particularly light today, with
lower-than-average options volumes across EUR/USD, GBP/USD, USD/JPY and others.
However, this isn't uniform across all currency pairs today with USD/CNY,
AUD/USD and USD/INR volumes actually greater than average today. USD/CNY options
are, by a distance, the most popular today, with $5.4bln worth of trades changes
hands vs. the $4.2bln you'd expect to see so far in a regular trading session.
There appears no preference for puts over call (or vice versa) today, and this
pattern is consistent when looking at only trades of size $50mln and over.
Nonetheless, 1m risk reversals today touched their lowest since January,
reinforcing the belief that the PBoC will not allow the CNY to weaken in a
disorderly manner and showing that their verbal intervention and policy tweaks
are having the desired effect.

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