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💶🔻 Premium to Hedge Against EUR/USD Decline Rises: Cable FX Macro

  • EUR/USD 1m risk reversals turned sharply lower on Friday, the tenor is now 14bps lower to 0.623, puts favored over calls. The reading compares to the intra-week high of 0.425

  • Demand to hedge against a decline in the EUR/USD increased following the release of U.S. September CPI data. This is not to say that it is the only factor influencing the options market, a broad risk-off trade is seen across asset classes

  • EUR/USD 1m implieds are higher on the day by 0.43 vols to 7.710%, the 1w tenor stands at 7.413%

  • AUD/USD, GBP/USD also see a rise in implied volatility over the last week. We noted G10FX 1m realized vol extending higher on Thursday session


 
 
 

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