Investors looking to protect against euro price swings following the European Central Bank monetary policy decision on Oct. 26 may end up paying a smaller premium than they would have expected.
The much-anticipated announcement of the Governing Council’s plans on stimulus tapering has seen one- week implied volatility rising. Still, its spread versus realized volatility stays below levels seen ahead of the ECB’s September meeting and the Federal Reserve’s gathering in May, which may show that current market pricing reflects as accurately as possible the ECB’s decision.
Source: Bloomberg Pro Terminal
Trader-G.Bozhidarov
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