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Yesterday's session saw the highest daily...>

OPTIONS
OPTIONS: Yesterday's session saw the highest daily turnover in currency options
markets for over three months, with outsized demand for EUR/USD, USD/CNY and
AUD/JPY options helping boost overall volumes.
- A similar pattern is seen this morning, with EUR/USD, USD/CNY and USD/HKD
structures seeing higher-than-average options volumes for this time of day.
Despite the higher options volumes this morning, front-end implied vols are
trading heavy, but largely within recent ranges.
- EUR/USD hedging is still showing a slight call bias, with firm demand for call
strikes layered between $1.1590-1.1610 (although most of this volume looks tied
to volatility hedges as part of $1.1610 & $1.1590 straddles that eye end-July
and end-September expiries).
- As Sino-US tensions remain fraught following orders for consulate closures
earlier in the week, USD/CNY upside protection has been in focus, with call
strikes at 8.00 and above trading throughout Asia-Pac and European hours - most
on a one-year expiry.
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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