• EUR/USD implied volatility hit hard after central bank risk premiums pared

• Benchmark 1-month from 8.7 to 7.6 - now sits on December and 1-year lows

• 3-month from 8.3 to 7.8 - new lows since May. Sales flags 2 major signals

• 1. Low implied vol is consistent with low actual volatility and range trade

• 2. Long term lows more likely to cover premiums and offer cheap FX hedges

• Positioning before cen-bank meetings showed heavy upside resistance

  
  

  
  

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