FX VOLATILITY RISES AHEAD OF FED DECISION Markets expect no Fed rate change Wednesday, but short-term FX volatility premiums are rising, warning against complacency. Implied volatility — key in FX option pricing — has jumped as dealers price in Fed-related risk and Powell’s comments. Key Moves (pre-Turkish lira drop): 🔸 EUR/USD overnight implied volatility rose to 13.5 (from 10.0), pricing in 62-pip moves vs. 45 pips. 🔸 USD/JPY climbed to 16.5 (from 13.0), implying 103-pip swings vs. 81 pips. 🔸 AUD/USD rose to 11.5 (from 8.5), with a 30-pip premium vs. 22 pips. 🔸 GBP/USD and USD/CHF also higher, factoring in Thursday’s BOE and SNB decisions.