Currencies are not expected to experience much volatility this year according to the options market
Implied volatility of major exchange rates has decreased significantly, reaching levels seen two years ago
Three-month options prices for major currency pairs are back to early 2022 levels
Low demand shows lack of interest in hedging currency swings using options
Markets are convinced that major central banks will hold off on cutting rates until late July at least
Dollar remains historically overvalued despite economic performance differences
Little differentiation in interest rate policies among major central banks
Market underestimates potential for dollar strength, especially with election risk into November
Implied volatility of major exchange rates has dropped to pre-Ukraine invasion levels
CME Group’s G5 currency volatility index has subsided to 2021 levels
Lack of demand for currency hedging or speculation via options
Other central banks seem intent on matching the Federal Reserve in terms of rate decisions
Markets may be underestimating the potential for more dollar strength
Uncertainty in FX markets likely to continue until the middle of the year at least
North Korea’s first spy satellite, Malligyong-1, is operational and successfully maneuvering in orbit
The satellite conducted orbit-raising maneuvers from Feb. 19-24, proving North Korea has control over it
Malligyong-1 is believed to have the capacity to photograph sensitive sites in South Korea, the United States, and elsewhere
Presence of an onboard propulsion system was unexpected and signifies a significant development in North Korea’s satellite capabilities
North Korea’s ability to raise the satellite’s orbit indicates potential for prolonging its lifetime by combatting orbital decay through altitude adjustments.
Column-Fx Seismograph has become quieter leading up to Pre-Ukrai…
Market experts are uncertain about the implications of this silence on the market
Investors are advised to stay updated and cautious amidst the shifting dynamics
Currencies and Exchange Rates:
Currencies are not expected to experience much volatility this year according to the options market
Implied volatility of major exchange rates has decreased significantly, reaching levels seen two years ago
Three-month options prices for major currency pairs are back to early 2022 levels
Implied volatility of major exchange rates has dropped to pre-Ukraine invasion levels
CME Group’s G5 currency volatility index has subsided to 2021 levels
Low demand shows lack of interest in hedging currency swings using options
Lack of demand for currency hedging or speculation via options
Dollar remains historically overvalued despite economic performance differences
Little differentiation in interest rate policies among major central banks
Other central banks seem intent on matching the Federal Reserve in terms of rate decisions
Markets may be underestimating the potential for more dollar strength
Strategic Developments in North Korea:
North Korea’s first spy satellite, Malligyong-1, is operational and successfully maneuvering in orbit
The satellite conducted orbit-raising maneuvers from Feb. 19-24, proving North Korea has control over it
Malligyong-1 is believed to have the capacity to photograph sensitive sites in South Korea, the United States, and elsewhere
Presence of an onboard propulsion system was unexpected and signifies a significant development in North Korea’s satellite capabilities
North Korea’s ability to raise the satellite’s orbit indicates potential for prolonging its lifetime by combatting orbital decay through altitude adjustments.
Market Sentiment and Uncertainty:
Markets are convinced that major central banks will hold off on cutting rates until late July at least
Market underestimates potential for dollar strength, especially with election risk into November
Uncertainty in FX markets likely to continue until the middle of the year at least
Column-Fx Seismograph has become quieter leading up to Pre-Ukrai…
Market experts are uncertain about the implications of this silence on the market
Investors are advised to stay updated and cautious amidst the shifting dynamics