• Implied volatility gauges actual volatility risk- key part of option premium

• EUR/USD FX option implied volatility lower as spot stagnates above 1.0500

• 1-month expiry implied volatility now 7.8 from 8.15 Wed and 8.8 on Monday

• However, near term event risk premium supports very short date expiries

• Overnight expiry now includes U.S. NFP - implied vol 15.5 from 13.5 on Wed

• 1-week expiry includes ECB - implied vol regains Wed's 10.5 peak from 9.5

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