• Price action in FX options is not consistent with GBP/USD gains

• There's minimal demand to cover the risk of GBP gains with GBP call options

• 1-month risk reversal met sales of GBP calls after brief flip in late Aug

• That contract retains a small downside strike premium since

• Implied volatility under pressure as post NFP risk premiums pared

• Lower implied volatility consistent with range trade/low realised volatility

• Resistance 27 Aug hi 1.3266, March 2022 hi 1.3298, 1.3300 option barriers

• U.S. CPI on Wednesday but volatility risk premiums far below those prior NFP

• Standout FX option strike expiries this week nL1N3KR06U

For more click on FXBUZ