Key Takeaways with Craig
As the dust settles on an eventful mid-December week, during which Federal Reserve Chairman Jerome Powell signaled cuts to its Fed Funds target rate next year, US Equity prices wound up higher and Treasury Yields were lower. As we often do on Friday, below is a recap of the net price and volatility changes in some of CME’s major products, compiled with QuikStrike and CVOL data.
- E-mini S&P 500 and Nasdaq-100 prices were up by about 2.5% and 3% while implied volatility in the options continues to trade at or near 3+ year lows.
- WTI Crude Oil futures prices have been relatively range-bound and CVOL is little changed.
- Gold price action has been more active though winds up higher by just about 1% while CVOL dropped on the week.
- CME FX markets have also reacted to the lower yields with most major currencies trading higher relative to the US Dollar. CVOL traded lower.
- As mentioned, US Treasury yields have moved lower after the announcement with the Micro 10-Year Treasury Yield future down by almost 35 basis points. CVOL levels traded higher.
As always, we wish all our In FOCUS readers a happy and safe weekend.
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