By Richard Pace — Oct 16 - 02:30 AM
Overnight options now expire 10-am New York/3-pm London on Thursday
They now include ECB policy announcement where a 25bps cut is expected
Overnight EUR/USD implied volatility has increased to 9.75 from 6.5
Implied volatility flags FX realised volatility expectations
Premium/break-even from 30 USD pips to 44 USD pips in either direction
Gains are far from excessive but clearly expecting some related volatility
Other dates remain subdued as EUR/USD volatility remains limited
FX Options wrap nL1N3LR0KS
For more click on FXBUZ
Source:
Refinitiv IFR Research/Market Commentary