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USD Options Sanguine as DXY Stabilises

OPTIONS

FX options markets saw considerable interest in USD upside protection at the height of the Coronavirus crisis, but this has considerably moderated, with the recovery of the EUR (and EUR call volatility) largely responsible.

This has left a simulated USD 1m risk reversal contract ebbing at its lowest levels since March - and now relatively neutral.

This shifts attention to any recovery in market activity as September rolls around and as focus turns to this week's Jackson Hole policy symposium and the pick-up of activity ahead of November's Presidential election.


Source: MNI

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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