Gavekal Capital: VDAX Set to Rise?

Wednesday, January 21, 2015

VDAX Set to Rise?

In recent history, each time the EUR has fallen relative to the dollar, the implied volatility of the German DAX has risen-- sometimes rather sharply.  With the euro's significant decline, it is not much of a stretch to conclude that things could get more interesting (perhaps in light of certain important announcements from the ECB tomorrow?):


(five-year time horizon)