Dollar stability crushes foreign-exchange volatility

The year 2024 looks set to for a persistent, trending bear market for the greenback that in itself will sap volatility as risk markets reflate on the back of central bank easing hopes. — Reuters

IF you were looking for a klaxon to mark the end of the interest rate cycle, a crushing of currency market volatility rings loudly.

Deutsche Bank’s CVIX – the currency market’s version of Wall St’s “fear index” of stock volatility and a weighted average of implied “vol” in nine major pairings – has basically imploded.