⚠️💱Euro And Sterling Short-Term Vol Picks Up: Cable FX Macro

• Short-term implied volatility rises in EUR/USD and GBP/USD, structures are now inverted when compared to longer-dated tenors

• The pick up in implied vol has been seen across currency crosses except for USD/JPY, the 1w tenor rose 1.66 vols in the euro and 1.97 vols in sterling this week

• In the euro, 1w implieds tick at 7.405% vs 1y 6.872%. Risk reversals favour puts over calls by 20bps over the next month, relatively unchanged from the prior week