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Expected price swings on currencies, stocks retreat

Published 03/25/2020, 04:53 PM
Updated 03/25/2020, 05:00 PM
© Reuters.
V2TX
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LONDON, March 25 (Reuters) - Expected price swings on some
of the world's most actively traded currencies retreated further
on Wednesday, as global policymakers pumped in more stimulus
into world markets battered by the coronavirus outbreak.
Implied volatility on one-month euro-dollar currency options
EUR1MO=FN fell to 10% in early London trading from 14% on
Tuesday. Similar gauges on one-month pound-dollar options
GBP1MO= fell by a third to 16.6% versus 22%, indicating some
calm was returning to panicky markets.
A similar indicator in the European stock market .V2TX
dipped to near two-week lows.

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