• GBP/USD implied volatility under heavy selling pressure with EUR/USD

• Implied volatility was trading at new long term highs in both pairs

• GBP/USD vols at highs since Oct 2023 - clearly deemed expensive

• Benchmark 1-month expiry GBP/USD implied volatility now 8.65 from 9.1 Mon

• 2-month sold 8.5-8.25 Tues and 3-month 8.45-8.2 (8.6 peak Mon)

• 1-week implied slower to ease amid risk of NFP driven realised volatility
GBP/USD FXO implied volatility

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