Equity, Bond, FX and Oil Volatility Premiums Volatility premiums have significantly declined across asset classes after the U.S. elections. As election results become known, market uncertainty diminishes, leading to lower volatility premiums and increased stability. Image: Deutsche Bank Asset Allocation
G10 FX Carry Trade Index The Bank of Japan’s recent actions caused market turmoil termed an “ugly deleveraging event,” reflecting ongoing economic challenges in Japan. Navigating a post-deflationary landscape adds complexity to the situation. Image: BofA Global Investment Strategy
Gold Price vs. Gold Composite FX Breadth Indicator Can gold continue to rally amid a rising U.S. dollar? Image: Topdown Charts
Global FX Volatility In the current environment of low inflation and low interest rates, volatility in foreign exchange markets hits record low. Image: BofA Global Investment Strategy
VIX – Volatility Indexes The current low volatility environment is likely temporary, presenting an opportunity to capitalize on inexpensive volatility levels to protect equity positions. Image: Bloomberg
Currency Markets and U.S. Elections FX markets are pricing in a Biden presidency and a blue sweep as well. Image: Morgan Stanley Wealth Management
Sentiment – U.S. Dollar (USD) and Euro (EUR) The EU recovery fund provides more support for the euro. But is the reign of the U.S. dollar as the world’s reserve currency under threat? Image: BofA Global Research FX and Rates Sentiment Survey
Stocks, Bonds, Foreign Exchange and Commodities Outperformance Stocks, bonds, FX and commodities outperformed in 2019. Image: Deutsche Bank Global Research
2019 Assets Performance 92% of more than 300 assets across equities, commodities, FX and credit are up this year, compared to less than 20% in 2018. Image: BofA Merrill Lynch
Survey: US-China Trade Agreements About the “phase one deal”, the latest BofA Merrill Lynch edition of the FX and rates sentiment survey shows that 65% of fund managers see a skinny agreement, delaying some tariff increases. Image: BofA Merrill Lynch
Survey: What Is The Most Effective Risk-Off Hedge? In the latest BofA Merrill Lynch edition of the FX and rates sentiment survey, a majority of respondents preferred 10-year Treasuries as the most effective risk-off hedge. Only 6% of respondents chose gold and the yen. Image: BofA Merrill Lynch