LONDON, Feb 9 (Reuters) - Bets on volatility ahead for euro-dollar exchange rates surged to a 2-month high of 11 percent on Tuesday as traders put more money on the dollar, flipping most derivatives pricing in favour of a weaker euro over the next few months.
Driven by broad market worries over European banks which have weakened the euro, one-month implied volatility jumped to a high of 11.012 in morning trade in London, up from an almost 1-year low of 8.3 percent hit on Feb. 2. EUR1MO=
Three-month risk reversals had flipped in favour of the single currency last week for the first time in more than three years. With the exception of the 1-month contract - which includes next month's ECB meeting - they were back in negative territory after two days of sharp falls in pricing since Friday's U.S. labour report. EURVOL=
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