By Richard Pace — Apr 25 - 05:50 AM
FX option implied volatility meets demand after setbacks from recent highs
Benchmark 1-month expiry EUR/USD paid 5.9-5.95 early Thursday
Contract up from late 2021 lows at 4.9 late March to 7.15 mid April high
Mid-east related risk aversion and USD gains lifted implied vol/demand
1-month daily realised vol (fair value measure) is currently 6.2
3-month and 1-year implied vols also half-way between recent highs and lows
1-week expiry implied vol elevated by May 1 FOMC inclusion nL2N3GY0M6
Focus on JPY and BoJ intervention risk on Friday nL2N3GY0P9nL2N3GY0TW
For more click on FXBUZ
Source:
Refinitiv IFR Research/Market Commentary