⚠️💱EUR Front-End Implied Volatility Within Ranges: Cable FX Macro
- Rosbel Durán
- Apr 26, 2023
- 1 min read
EUR/USD implied volatility 1w tenor now captures the Federal Reserve May policy decision, next week's docket will also be holding the ECB meeting
1w IV stands at 7.974%, this is well within the range seen over the last month, the vol premium is now at par, off the month-to-date highs of 180 basis points
The spot price is extending gains on the day, EUR/USD is now up 0.7%, last at 1.1052
An FX rate model, constructed by Bloomberg, now sees a 74% chance of the EUR/USD trading within 1.0933 and 1.1198 over the next week. This goes to contrast analysts forecasts, projections are skewed towards a lower euro, with the consensus at 1.09
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