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Free AccessVolatility Hedges Help Drive EUR Options Volumes Ahead of Average
- Currency options markets saw their best volumes since April 13th yesterday, with total DTCC-traded notional topping $85bln. Activity remains high ahead of the ECB decision, with above-average trade across EURUSD, USDKRW and EURGBP helping prop overall volumes.
- Most notable trades in EUR/USD are consistent with volatility hedges: two sizeable strangles traded at the early NY crossover: a 1.05/1.15 strangle expiring at end-June, and another 1.0615/1.0800 strangle with a one-year expiry.
- Outside of those trades, 1.0750 and 1.1000 puts have seen decent interest, with over E1.3bln in notional trading across both strikes this morning.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.