**As seen in Macro Walk report 10/21/22, subscribe at cablefxm.co.uk/reports
Implied volatility is most undervalued in the 1mo tenor across our watch list. Sterling crosses post almost 700bps premiums, while the differential is reduced into the curve, the three-month tenor is still some 100bps undervalued
Speaking of GBP, pound hedging demand declined the most this week, 1mo IV fell 200bps and the 1w tenor dropped by almost the same magnitude
The USD/JPY implied vol curve posted a sharp rise as the front end led this week. 1w vol came higher by circa 6 vols to 19.5%, the 1mo tenor ticks at 15.7%
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