According to the data source Factset, the CBOE Euro Volatility Index, which measures the market expectation of the 30-day volatility of the EUR / USD exchange rate, has decreased to 6.6, the lowest level since the end of February 2020.
The currency market has calmed down despite the fact that the stock and commodity markets remain volatile.
Volatility is reverting to average. A prolonged period of calm or movement in range often paves the way for a big move in any direction.. Furthermore, the Euro volatility index is still well above the lows recorded at the beginning of last year.
The Euro Volatility Index bottomed at a decade-long low of 4.98 points on January 31, 2020 and rose to a multi-year high of 9.03 in April., when the coronavirus crisis unleashed many uncertainties.
EUR / USD is currently trading near 1.2130, having bounced between 1.1952 and 1.2149 in the five trading days through February 11.
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