• Implied volatility gauges actual volatility risk, key to FX option premium

• 1-12-month expiry EUR/USD implied volatility highest levels since March 2023

• Firmer USD, new spot lows, combined with Trump risk, fuels demand since Nov

• However, EUR/USD spot losses falter and consolidation caps more gains now

• Friday's U.S. NFP data is key to next move - market alert for result

• Keeps -week expiry implied volatility high in all USD related pairs
EUR/USD FXO implied volatility


1 week expiry FXO implied volatility

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