Derived Data That Drive Results
By Richard Pace — Dec 03 - 02:35 AM
FX volatility is an unknown, yet key part of an FX option premium
Implied volatility is used as a stand-in, reflects realised volatility risk
EUR/USD 1-12-month expiry implied volatility hits new highs since March 2023
Market clearly concerned about increasing risk of excessive volatility ahead
Recent drop in downside v upside implied volatility risk premiums now stalls
These risk reversal options show EUR/USD downside is the more vulnerable
For more click on FXBUZ
1-3-12-month expiry EUR/USD risk reversals Click here
EUR/USD FXO implied volatility Click here
Source:
London Stock Exchange Group | Thomson Reuters
