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Euro-dollar implied volatility rose back above 6%, its highest in nearly six months, after the coronavirus-driven selloff shook the typically calm currency pair. Concern is growing about short-volatility positioning that could trigger a sharp market unwind.
Rising volatility and possible positioning unwinds can drive sudden dollar moves that feed through to dollar-priced commodities. The effect on grain and feed prices is indirect.
moneyandmarkets.comMoney, Markets StaffFeb 28, 2020After 1,108 past macro events, Euro (USD per EUR) moved a median -0.1% over 5 sessions (46% higher; middle half -0.7% to +0.6%), and -0.3% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
