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?):

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(five-year time horizon)