• Euro/dollar volatility is very close to the last 30 days’ high
• Volatility in commodities remains elevated
• Stock indices experience above average volatility

 Euro/dollar volatility remains very high, close to the highest level of the past month, as the US dollar continues to rally following a series of strong US data and some hawkish Fedspeak. Interestingly, the volatility of yen crosses has crashed across the board, with the yen surrendering another good part of its recent sizeable gains on the back of weaker data and a snap election called for late October.

Volatility in the commodities space remains very elevated as both oil and silver recorded weekly price losses. Particularly, the former had some disastrous price sessions, as Israel is apparently adamant that it can avoid hitting Iran’s oil installations and China continues to disappoint expectations for a growth pickup. In the meantime, gold volatility has eased considerably as the precious metal saw slight gains despite the strong dollar rally.

With most stock indices recording strong weekly gains despite the latest developments in the Middle East, volatility dropped across the board but remains at above average levels. Market participants are also digesting the third quarter earnings releases and the recent Fedspeak, which is potentially slightly complicating the November Fed rate cut.

Finally, bitcoin is experiencing very low volatility after managing to record a sizeable rally on a weekly basis, mostly benefiting from the current risk on sentiment that is present in equities.