vxo hourly
Started by
eminimee
, Jan 23 2007 01:49 PM
1 reply to this topic
#1
Posted 23 January 2007 - 01:49 PM
#2
Posted 23 January 2007 - 02:06 PM
ABN via briefing.com:
"[Monday] one year vols in both USD-JPY and EUR-USD hit new lows since the euro was launched in 1999. It is difficult to make a blanket statement on whether financial markets have entered in to an irrational bubble, in which they have reached a wrong price for volatility. It is not just FX vols that are near record lows-the same can be said for equity vols ...and vols in select other financial prices. It is possible that greater regulatory oversight of capital markets, better liquidity and adequately reserved financial institutions...has decreased global risk, so the reduction in vol is entirely appropriate. That secular decrease in vol may be accompanied by a cyclical component, as almost the entire global economy is in a steady state of growth with output near potential. There is a third element to consider, though, and that is the dramatic increase in volatility selling by hedge funds. Such a strategy has generally been profitable in FX over the past three years, but like any financial market trend, it may have gone too far."
"[Monday] one year vols in both USD-JPY and EUR-USD hit new lows since the euro was launched in 1999. It is difficult to make a blanket statement on whether financial markets have entered in to an irrational bubble, in which they have reached a wrong price for volatility. It is not just FX vols that are near record lows-the same can be said for equity vols ...and vols in select other financial prices. It is possible that greater regulatory oversight of capital markets, better liquidity and adequately reserved financial institutions...has decreased global risk, so the reduction in vol is entirely appropriate. That secular decrease in vol may be accompanied by a cyclical component, as almost the entire global economy is in a steady state of growth with output near potential. There is a third element to consider, though, and that is the dramatic increase in volatility selling by hedge funds. Such a strategy has generally been profitable in FX over the past three years, but like any financial market trend, it may have gone too far."
Da nile is more than a river in Egypt.