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  • Euro/dollar volatility remains low despite weekend’s events

  • Volatility in commodities jumps, apart from oil

  • Stock indices experience stronger volatility, decoupling from Bitcoin

Euro/dollar volatility remains very low despite last week’s weaker CPI report and the weekend’s gun attack on the Republican Presidential candidate. On the flip side, volatility in yen crosses has increased considerably as the BoJ is rumoured to have intervened last week in dollar/yen, ahead of the end-July BoJ gathering.

In the meantime, volatility in gold has jumped to the highest level of the past 30 days, mostly on the back of the ongoing dollar weakness, amidst another decent weekly price gain. On the contrary, volatility in oil has dropped to the lowest level of the past month, which signals a lower possibility for stronger movements ahead.

Stock indices' volatility has increased further, especially in the Dow Jones and the Nikkei 225 indices, as the market welcomed last week's weaker inflation report that boosted expectations for a Fed rate cut in September. Interestingly, volatility in the DAX 40 index remains low.

Finally, a double digit price jump in Bitcoin has failed to push volatility higher. Instead, volatility has crashed to the lowest level of the past 30 days.