6 minutes

VIDEO

10 AUG 2020

FX Options: Mapping Volatility Expectations

By CME Group

In “FX in Brief”, the first of our new “In Brief” series of videos spotlighting timely market issues, Co-Head of EMEA Sales Serge Marston leads an exploration of the current dynamics in the forex market through a look at FX options.

FX volatility started 2020 at all-time lows before the COVID-19 crisis caused a significant spike (also reflected in nearly every other asset class). As the market approaches six months since that volatility spike, the US dollar is weakening— down about 10% from levels seen during the pandemic.

This video covers the economic implications following COVID-19 and how the market is anticipating volatility heading into the upcoming US election. With Global Head of Research and Product Development Owain Johnson, Serge paints a clear view of the economic landscape before moving into a discussion of FX options with Executive Director of FX Products Craig LeVeille.

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Related resources

To explore what FX options are saying about risks in the FX market, take a look at the following QuikStrike Analytic Tools:

This Week in Options
Volatility Term Structure
FX Options Vol Converter