⚠️💱 Front-End FX Vol Rises, Premiums Rise: Cable FX Macro

**As seen in Macro Walk report 12/01/23, subscribe at cablefxm.co.uk/reports

• Front-end implied volatility rose, with 1w and 2w tenors recording the largest rise. EUR/USD 1w jumped by 1.6 vols and USD/JPY 1w rose by 2.6 vols, the latter stands at 10.0%

• AUD/USD 1w tenor holds the RBA Cash Rate decision and GDP figures, it increased 1.2 vols to 10.57%

• Real volatility is now lagging in FX pairs which is translated to higher premiums, except for NZD/USD

• In risk reversals, the yen has the most bullish rank in the 1w tenor, last read sees 120bps in favour of calls