Markets are relatively quiet leading into the NA open and particularly so in FX markets where outside of the Chinese CNY and the Ukrainian UAH, most currency are trading comfortably within recent ranges. On the back of this, volatility in FX and equities hasdropped lower (with G7 FX vol at 14‐month lows, emerging market FX vol having dropped back below their one year average and S&P vol back down below 14). The official abandonment of the Ukrainian currency peg and rising concerns over default have so far remained localized; while the Asian CNY session provided some signs of calming. Today’s calendar is light (see page 3); with just new home sales and one Fedspeech (Rosengren).
Read the full report: FX Daily
Scotiabank