Exchange Focus
CME Group: Is Higher Volatility Making a Comeback?

August 2020

Higher volatility might be returning to major asset classes led by US equities after eight years of dormancy stoked by the escalating trade war and slowing global growth.

But the underlying cause might be the Fed’s tight monetary policy that saw a series of nine rate hikes between 2015 and the end of 2018.

  • Options on US equities might be signaling a nascent trend to higher volatility
  • Volatility in bonds, grains, gold and silver appear to be on the rise as well
  • Copper volatility has been restrained despite escalating trade war, price drop
  • US monetary policy has typically been the underlying cause for higher volatility.

Read more: Is Higher Volatility Making a Comeback?

Further information:

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