* Volumes are marginally up on those from yesterday, but there remains a lack of net directional flow, particularly for USD. EURNOK has been trading bid Friday on the back of a weaker CPI print; this looks like position cutting after the market got long NOK last week on the break of 1.0130/40 in NOKSEK.
* In EM, EURCZK and EURPLN had a volatile start, but LPNCZK is back up to the 50-day moving average and the top of the channel in place since October. On the vol side, in EURGBP, there was some demand for topside RKOs in the 3m-6m part of the curve yesterday, supplying the market with topside. Vol and risk reversals have now sold off from the highs.
* JPY vols are trading very heavy as the spot failed to break lower in Asian trading hours, and is now moving back towards 110. Some long structures have been reduced by directional players over the past couple of days in both USDJPY and JPY crosses, but the has not really been muds interest for downside yet.
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