• The FX volatility upon which options thrive is gauged by implied volatility

• EUR/USD implied volatility off pre tariff highs but well above prior lows

• Benchmark 1-month expiry opens higher on Monday - 9.6 from 9.1 Friday

• Comes despite spot consolidation and highlights simmering volatility risk

• Risk reversal charge implied volatility premium for EUR calls over EUR puts

• Also off highs but well supported just below, especially longer dates

• Shows market thinks EUR/USD topside more vulnerable to gains and volatility
EUR/USD risk reversals


EUR/USD FXO implied volatility

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