• 1-month GBP/USD FX option expiry now Nov 2 - includes Nov 1 Fed, Nov 2 BoE

• More chance of related realised volatility lifts 1-month implied volatility

• 1-month GBP/USD implied volatility now 8.1 - high since early August

• Peaked 8.0 from l-t low 7.0 last week before edging back to 7.6 Friday

• However, past 1-month realised volatility 5.1 suggests implied is expensive

• Repeat FX performance and longs wouldn't break-even at current implied level

For more click on FXBUZ