• EUR/USD FX option premiums significantly higher with spot this week

• Implied volatility reached mid Jan highs, but peaks as spot consolidates

• Benchmark 1-month expiry now 8.6 after increase from 7.8 to 9.2

• Overnight expiry off highs too, but still very elevated before NFP date

• Premium-break-even for vanilla straddle is 75 USD pips in either direction

• That compares with average price around 40 USD pips last week

• Related comments
Overnight expiry FXO implied volatility

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