• Euro/dollar volatility remains low as dollar underperforms

• Volatility in commodities stays elevated, led by gold

• Stock indices experience decent volatility despite the rally

Euro/dollar volatility has eased a bit over the past week, as the market digested the strong Fed rate cut. Similarly, volatility of most yen crosses has dropped aggressively lower, as the yen surrendered part of its recent sizeable gains, despite the fact that the BoJ maintained the chances of another rate hike in 2024.

Volatility in the commodities’ space remains elevated as both gold and oil recorded sizeable weekly price gains on the back of the dollar’s recent weakness and the escalation in the Israel-Hezbollah conflict, with the former rumoured to be preparing for a ground operation in Lebanon. Interestingly, silver volatility has eased somewhat from its highest level of the past 30 days as the price of silver dropped a tad over the past week.

With most stock indices recording strong weekly gains, volatility across the board has dropped from high levels since most stock investors welcomed the Fed rate cut announcement, despite the continually strong US data releases.

Finally, bitcoin’s strong rally fueled a jump in volatility to the highest level of the past month, as the cryptocurrency world mimicked the positive price performance seen in equities.