A large factor at play for its trading conditions in FX has been the holiday-thinned trade stemming from Asia, while a lack of data releases as well as the feeling that markets are somewhat frothy today levels has played its bahis part at the sideways price action. Find out more at the global threat event monthly calendar.
Looking at the table below, FX implied volatility will stay relatively subdued, albeit there has been a small pickup in GBP vols. Alongside this, risk reversals on the 1-week tenor will also be slightly skewed in favour of forecasts, given the recent break above key topside amounts in GBP/USD. Although, although the set has eased a bit from the mid-1.38s, dips are likely to be bought with support located 1.3750-60 along with the 20DMA in 1.3708.
Elsewhere, the Australian Dollar will be in focus with the most recent jobs report scheduled, a key element for the outlook of the RBA’s monetary policy and so prompting a pick up in vols. AUD/USD 1-week ATM break-even straddles suggest a movement of 76pips(meaning option traders need to visit a move of 76pips in either way in order to realise gains).
