Derived Data That Drive Results
By Richard Pace — Aug 26 - 05:50 AM
FX options thrive on volatility and use implied volatility to gauge it
Implied volatility has been edging higher with spot over recent sessions
Risk reversal contracts show which direction FX volatility is more likely
Benchmark 1-month expiry risk reversals finally lose downside strike premium
However, they are yet to adopt a significant topside strike premium
The contract hasn't held a topside strike premium since the Covid pandemic
Outright bets for more GBP/USD gains have proved limited so far, too
Has GBP/USD reached its limit? nL1N3KD07W
For more click on FXBUZ
GBP/USD FXO 1-month expiry 25 delta risk reversals Click here
GBP/USD 1-month expiry FXO implied volatility Click here
GBP= Click here
Source:
Refinitiv IFR Research/Market Commentary
