⚠️💱FX Implied Vol Curve Inverts Further: Cable FX Macro

• Thursday session sees a rise in implied volatility across tenors, however, the front-end of the curve is showing the steepest increase across FX pairs

• G10FX short-term implied vols record upside moves above 1 vol on Thursday, except for USD/CAD (+0.8). USD/JPY 1w tenor is up 4.86 vols to 14.21%, this is the highest since July. Other notable moves are seen in AUD/USD and USD/CHF gamma

• Option skews are favoring USD/JPY downside the most since late October, 1w risk reversals tick at 180bps in favour of puts