• EUR/USD remains resilient despite latest Mid-East tensions, as traders focus on upcoming key drivers.

• Hedging activity linked to huge EUR 2.2 billion 1.1750 option strike helps contain ahead of its 10am New York expiry

• Market participants are in a wait-and-see mode ahead of US jobs data due at 12:30 GMT, helping to contain FX ahead

• Tame overnight volatility risk premiums suggest dealers are not bracing for a significant surprise in US jobs data

• Broader EUR/USD implied volatility continues to languish near pre Mid-East conflict lows - reflects calmer climes

• Risk reversals pare downside strike premiums and are now close to a neutral directional bias
EUR/USD FXO implied volatility


EUR/USD 25 delta risk reversals


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