• EUR/USD options met demand after last weeks cull as key events loom

• Risk aversion surrounding tech stock slump and Tariffs - supports, too

• Overnight expiry options now include the Fed and ECB policy announcements

• Overnight implied volatility highlights the perceived actual volatility risk

• From 11.0 before including the central bank announcements, its now 15.5

• Premium/break-even for straddle -48 USD pips to 67 USD pips either direction

• However, there shouldn't be any surprises - Fed expected to hold, ECB to cut

• Other dates supported - 1-week 9.0 and 1-month 7.6 (fell 9.2-7.2 last week)

• FX Options wrap
Overnight expiry FXO implied volatility

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