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With USD/TRY pulling comfortably off the....>

OPTIONS
OPTIONS: With USD/TRY pulling comfortably off the highs overnight (helping the
likes of MXN recover also), hedging volumes have declined somewhat since
yesterday, particularly for emerging market FX. As a result, safe haven hedging
demand has also dropped slightly, with USD/JPY options trades falling slightly
below average at the midpoint of European trade ($4.3bln vs. $6bln average for
this time of day). One spot of activity, however, is AUD/USD, with markets
looking to lock in low rates as spot touches the lowest levels since 2016. A
break below $0.7160 would likely see hedging volumes pick up further.
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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