• Tuesday saw a broad based FX option implied vol slump led by EUR/USD

• 1-month from 2-year high 9.1 to 8.3, 3-month 8.6 to 7.7, 1-year 8.1 to 7.6

• Market didn't seem too phased by subsequent spot setback to mid 1.03's

• However, implied volatility is trading higher as EUR/USD nears 1.0300

• 1-month paid 8.65, 3-month 8.05 and 1-year regains 7.8 in early London Wed

• Friday's NFP data keeps very short dated implied volatility underpinned

• A strong number that supports higher for longer rates, risks more USD gains

• 1.0200 option barriers and a key 1.0196 Fibo are key to deeper EUR declines
EUR/USD FXO implied volatility

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