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FX Volatility Crashes As Traders Unwind "Existential Euro" Hedges

FX Volatility Crashes As Traders Unwind "Existential Euro" Hedges

Heading into today's vote, FX options markets had seen massive demand for downside protection against a result that threatened the euro's existence. That didn't happen and so those hedges are being unwound en masse with the biggest drop in EURUSD implied vols in history...

 

Close up, 1mo EURUSD vols erased all the damage from the last few weeks' fears...

 

And Risk-Reversals (which measure the skew or relative demand for downside protection over upside), have spiked back to near 'normal' levels...

 

Trump Mulling Reneging on Another Campaign Pledge, Thanks to Ivanka and Jared Kushner

The global warming activist democrats in Trump's White House, led by Ivanka and Jared Kushner, are trying to convince the President to reneg on yet another campaign pledge, against the advice of Steve Bannon.

According to Bloomberg, a pro Paris bloc in his administration, which targets greenhouse emissions, is recruiting energy companies to lobby the President to remain in the controversial agreement that he specifically said was a waste of money during the campaign.

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