• EUR/USD FX option implied volatility meets heavy supply on London open

• Implied volatility gauges realised volatility risks - key to premium

• Entire 1-12-month curve extending setbacks from recent and 2-year highs

• 1-month expiry implied volatility now 8.6 from a recent 9.1 peak

• 3-month in to 8.0 from 8.6 and 1 year is 7.75 from 8.1

• Very short dates are more resilient ahead of Friday's U.S. jobs data

• Big strike expiries can help contain EUR/USD pre NFP

• FX options wrap
EUR/USD FX option implied volatility


EUR/USD FX option strikes expiring Jan 6-10

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