• Democrats' election win spooks AI investors, hammering stocks and boosting risk aversion

• That has lifted the price of FX volatility protection, with FX option implied vols moving higher across the board

• AUD/USD 1-month implied vol is the biggest gainer, at 7.65 from multi-year lows of 6.25 early Thursday

• USD/JPY 1-month vol reached 7.3 from 6.3 before supply returned

• Gains elsewhere are smaller: EUR/USD 1-month vol is 5.6 from 5.2, with similar rises in GBP/USD and USD/CHF

• Rising vols show growing demand for FX hedges, with risk-sensitive AUD/USD and USD/JPY leading the move
Benchmark 1-month expiry FXO implied volatility

(Richard Pace is a Reuters market analyst. The views expressed are his own)