We had recently noted the dollar losing grip of its long-term profile vs the volatility benchmark, the greenback rose despite the downtrend in vol
Our most recent update on G10FX beta vs vol keeps the dollar as the only positive B while the sensibility declined slightly into April. As a reminder, our study looks back to the previous 6-months on daily close
Trading in April has seen the volatility benchmark rise past 15.0 before pulling back, and while the uptick could be dollar-positive, the dollar is trading lower on the recent retracement
Volatility is not the only driver of currency markets, and the recent downtrend in vol could not explain performance in every G10 currency. As of the end of March, momentum had the strongest R^2 to G10FX in our factor baskets
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