⚠️💱USD/CNH Front-End Vol Rises to Highest Since Early April: Cable FX Macro
- Rosbel Durán
- May 21, 2023
- 1 min read
**As seen in Macro Walk report 05/19/23, subscribe at cablefxm.co.uk/reports
Front-end implied volatility in USD/CNH rose this week, the 1w tenor increased by 1.5 vols to 6.21%, this is the highest level since early April
We saw the spot price rise as it extended gains above the 7.0 level. On the move, we heard from the PBoC, the central bank said it was ready to curb FX speculation to prevent aggressive moves in the yuan
On volatility premiums, the 1m IV tenor stood firmer and is now 200 basis points above realized volatility. The 1m space looks the richest across the board
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