Listen
(3 min)
0840 GMT – A measure of expected price swings in the options market, or implied volatility, for the euro-sterling exchange rate is rising ahead of Wednesday’s U.K. budget, ING’s Francesco Pesole says in a note. The gap between one-week euro-sterling implied volatility and realized volatility—a measure of actual moves over the past week—has widened the most since the 2022 mini budget that sparked market turmoil due to unfunded tax cuts, he says. “This signals that despite some recovery in back-end gilts [U.K. government bonds], the currency market remains concerned ahead of tomorrow’s budget,” Pesole says. One-week implied volatility is around 6.4% compared to realized volatility of 3.6%, LSEG data show. The euro falls 0.1% to 0.8780 pounds. ([email protected])
Dollar Trades Steady Ahead of U.S. Data
0731 GMT – The dollar trades steady ahead of U.S. economic data that could influence expectations for the Federal Reserve’s December meeting. Delayed September retail sales and producer price index data will be released at 1330 GMT while the Conference Board’s consumer confidence survey is due at 1500 GMT. “With few other data prints on the agenda, the market reaction could be larger than usual and may very well affect sentiment surrounding the FOMC December meeting,” Danske Bank analysts say in a note. The recent government shutdown delayed official data, raising uncertainty over the Fed’s decision next month. The DXY dollar index trades at 100.154.([email protected])
Copyright ©2025 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
