Traders report increased interest in FX barrier products
LONDON - Banks last week began seeing increased interest in forex barrier products, driven by expectations for a continued drop in volatility and for currencies to remain in trading ranges this summer.
Dealers said double-no-touches (DNTs), options that extinguish once spot crosses upper and lower thresholds, are some of the structures being employed by speculators. Interest has mainly been in USD/JPY, with triggers of between 90 and 100, with the counter-activity of high dollar rate volatility
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