⚠️💶EUR/USD 1m Relative Premium Rises to Highest Since Mid-March: Cable FX Macro

• A drop in realized volatility has widened the gap between implied and historical vol in the 1m tenor, the relative premium is now at 145 basis points, the highest since mid-March

• Back in March, the banking meltdown sent implied volatility higher, the 1m measure reached above 10.0%, the last reading is at 7.0%. While the premium is extending, the dynamics now are different to the risk-off trading seen two months ago

• EUR/USD 1m realized volatility is now at the lowest level since January 2022, last at 5.59%