• FX option implied volatility meets demand after setbacks from recent highs

• Benchmark 1-month expiry EUR/USD paid 5.9-5.95 early Thursday

• Contract up from late 2021 lows at 4.9 late March to 7.15 mid April high

• Mid-east related risk aversion and USD gains lifted implied vol/demand

• 1-month daily realised vol (fair value measure) is currently 6.2

• 3-month and 1-year implied vols also half-way between recent highs and lows

• 1-week expiry implied vol elevated by May 1 FOMC inclusion nL2N3GY0M6

• Focus on JPY and BoJ intervention risk on Friday nL2N3GY0P9nL2N3GY0TW

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