News & Analysis

FX markets were incredibly volatile this week, as denoted by Deutsche Bank’s FX volatility index (CVIX). The main source of volatility came from events in the UK, which saw the pound fall to an all-time low on Monday morning and forced the Bank of England into two emergency statements. While UK assets stole all the main headlines, the economic data calendar and material increase in geopolitical risk also added to the overall volatile backdrop. FX markets were incredibly volatile this week, as denoted by Deutsche Bank’s FX volatility index (CVIX) below. The main source of volatility came from events in the UK, which saw the pound fall to an all-time low on Monday morning and forced the Bank of England into two emergency statements. While UK assets stole all the main headlines, the economic data calendar and material increase in geopolitical risk also added to the overall volatile backdrop. Given the events of the week and the level of volatility, we have opted to cover most of the questions we have faced from clients in a “Questions from the floor” section below. Should you have any questions that you’d like covered in the future, please don’t hesitate to write in.

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Authors: 
Simon Harvey, Head of FX Analysis
Jay Zhao-Murray, FX Market Analyst
María Marcos, FX Market Analyst

 

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