Reported 11 months ago
Traders are closely watching the upcoming French election, UK elections, and US presidential debates, leading to increased volatility predictions in the options market. The French election outcome's uncertainty has traders anticipating more volatility and a weaker euro. Meanwhile, US candidates' views on economic policies could influence expectations for the US dollar. European stock markets are experiencing mixed volatility, with the French CAC 40 Index showing increased volatility spread compared to Germany's DAX Index. The market is on edge with hedging demand and bearish contract trading surging, while euro-dollar and euro-Swiss franc options costs are at their highest levels. Chinese yuan options express concerns about potential US protectionism. Traders are bracing for heightened market uncertainty and extreme positions in various currencies during this usually quiet trading period.
Source: YAHOO