• FX option volatility and downside strike premiums below recent and l-t highs

• Benchmark 1-month implied volatility 6.75 from a 7.3 peak last week

• 1-month 25 delta risk reversals 0.35 from 0.5 vol premium EUR put over call

• However, buyers re-emerge at 6.8 and 0.375 respectively early Thursday

• Market vulnerable to volatility/USD gains from strong PCE Thurs/NFP Friday

• Weak data should cap USD and favour more short volatility trades thereafter

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