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Higher euro/dollar volatility ahead of US CPI report – Volatility Watch



  • Euro/dollar enjoys strong volatility ahead of key data releases

  • Gold and silver see higher volatility amidst muted price rally

  • Volatility drops in US equities as risk appetite returns

Euro/dollar volatility has jumped higher as the market is preparing for some key US data prints. On the flip side, volatility in yen crosses remains moderate after the recent Japanese interventions, with market participants trying to avoid further provoking the BoJ at this stage.

Volatility in the commodities space remains mixed. Oil price volatility has eased further even though developments in the Middle East are not pointing to a de-escalation, while gold, and especially silver, have seen a sizeable jump in volatility and hence, a higher possibility for stronger movements ahead.

Turning to risky assets, stock indices' volatility remains very low as the mixed US economic data have tentatively opened the door to a Fed rate cut over the summer, and the stronger-than-expected earnings have spurred demand for equities.

In the meantime, bitcoin volatility has ticked up a little bit as the king of cryptos is trying to find its footing after the halving event.

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