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⚠️1-Week FX Volatility Premiums Rise Across The Board: Cable FX Macro

Writer's picture: Rosbel DuránRosbel Durán

**As seen in Macro Walk report 01/27/23, subscribe at cablefxm.co.uk/reports

  • Tenors capturing this week's heavy docket show a rise in implied volatility, given the list of releases and the central banks we're set to hear from, a rise in IV is no surprise, but its relative premium shows a divergence not seen in more than a month

  • The largest relative premiums are seen in USDJPY and EURUSD markets, the latter is reversed as soon as we look further into the 2w tenor

  • While implied volatility increased across the board in the 1w tenor, the move saw mixed performances in 1mo. We saw a sharp move to the downside in high-beta FX, kiwi and CAD posted the largest drops.







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