• Euro/dollar volatility climbs to a new monthly high
• Volatility remains very elevated in both gold and silver
• Stock indices experience a jump in volatility

Euro/dollar volatility has climbed to a new 30-day high, as market participants are preparing for the US presidential election and Thursday’s Fed meeting. This heightened volatility is being observed across the FX space, including in the yen pairs. Despite the lack of progress on the formation of the new Japanese government, the yen is trying to take advantage of the dollar’s weakness. 

Volatility in gold reached a new monthly high, while silver saw a decent drop in volatility despite experiencing a sizeable price selloff on a weekly basis. However, with the US election remaining in the spotlight, demand for both assets will most likely remain strong.

In the meantime, volatility in oil has edged higher. With Iran apparently preparing for another direct attack on Israel and the OPEC+ alliance announcing a postponement of the planned production hikes, oil prices recorded a sizeable rally, pushing volatility higher.

With most stock indices experiencing negative weekly price movements, volatility across the board has increased further as the anxiety about the US election is peaking. Similarly, bitcoin’s rally above the $73k did not last, with volatility remaining elevated.