Over the last 6 months I am not sure if there has been a product that has seen its IV get smooshed more than that FXE. ?However, in the last few weeks, all that has begun to change. ?Euro Currency ?is starting to move and ahead of tomorrow’s meeting of the ECB the market is actually expecting some sort of pick up in movement either tomorrow or over the next few weeks. ?Take a look at a chart of the EVZ (the VIX of EVZ)
Livevol (R)?www.livevol.com
With the pop in EVZ yesterday, ?FXE vol has somewhat normalized and it could point toward some sort of change in movement in the currency. ?While some newswires report that little might happen, ?the EVZ is saying that there is some belief that consensus could be wrong.?
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