Volatility: A Lull That Could Deceive?

David Simmonds, Head of Currency & EM Strategy, RBS, takes a look at volatility across the markets in his paper ‘RBS Currency Themes’, of September 30.

Current volatility trends

Volatility is trending low across the major markets after the Fed’s momentous decision not to press ahead with a curtailment of the QE3 bond purchase program.

Currency – Eur/USD:

U.S. Treasuries:

Equities:

Fed: New and significant information

The new and significant information that could be gleaned from the ‘no-taper’ action is that...