By Richard Pace — Apr 14 - 02:45 AM
EUR/USD implied volatility meets demand from long term lows on Thursday
Benchmark 1-month expiry is 7.9 from 7.65 early Thurs, 3-month 7.7 from 7.5
2-month already bounced 7.3-7.7 Thursday as captures June Fed, ECB, now 7.9
1-month risk reversals have almost erased long standing downside vol premium
Any further FX gains could flip that premium to a topside volatility premium
Topside vol premium combined with more EUR/USD gains would lift implied vol
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Source:
Refinitiv IFR Research/Market Commentary