⚠️💱FX Front-End Vol Premiums Rise Into Heavy Docket: Cable FX Macro

**As seen in Macro Walk report 12/08/23, subscribe at cablefxm.co.uk/reports

• Premiums in the front end of the volatility structure showed a leg higher this week as we're set to receive tier-1 data and four G10 central banks decide on interest rates. In other words, short-term volatility is bid and above historic vol

• EUR/USD 1w implied volatility rose 157bps on the week to finish at 9.107%. The premium to realized volatility in this tenor is now at 154bps, the differential narrows moving into the longer term of the curve while the structure is inverted

• The sharp moves in the spot USD/JPY have seen 1m risk reversals rise in favour of puts to 173bps, the highest since July. The 1w IV tenor showed a rise of 2.91 vols, however, the 2w rose 4.29 vols as it covers the BoJ monetary policy