Vols Fall As Euro/Dollar Refuses To Budge

  • 28 Oct 2002
Email a colleague
Request a PDF

The cost of euro/dollar options fell last week as spot settled into a range between USD0.97-0.98. One-month implied volatility fell to 7.9%, down from 8.75% the week before. The options market has seen a lot of selling over the last few weeks with volatility approaching its lowest level since April or May, noted one trader in New York. Volatility in the equity markets isn't feeding through to the spot market with speculative investors, including hedge funds and bank proprietary desks, selling options as a result, added the trader.

Traders have been selling euro calls/dollar puts and buying euro puts/dollar calls, concentrating on short-term maturities including one-week and one-month. As the front-end of the volatility curve has been sold off, traders are now expecting the back-end to catch up. "The volatility curve will flatten until something happens to shake up spot," according to a trader.

Jason Bonanca, currency strategist at Credit Suisse First Boston in New York, thinks it is unlikely spot will continue to stand still for much longer. "It would be unusual to have three consecutive months of the euro/dollar spot rate not doing anything, particularly with the degree of geopolitical and economic uncertainty markets are facing," he added. Bonanca said the long term outlook, the next six to 12 months, for the greenback is slightly bearish, with the euro likely strengthening to stand at USD1.03-1.05.

EUR/USD Spot & One-Month Implied Volatility

  • 28 Oct 2002

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 16 Jan 2017
1 Citi 22,118.13 61 9.00%
2 Barclays 20,987.41 55 8.54%
3 JPMorgan 17,406.75 53 7.08%
4 HSBC 16,333.52 48 6.64%
5 Goldman Sachs 15,454.74 49 6.29%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 17 Jan 2017
1 Commerzbank Group 114.00 1 66.16%
2 CaixaBank 37.05 1 21.50%
3 UniCredit 10.62 1 6.17%
3 BNP Paribas 10.62 1 6.17%
Subtotal 172.30 3 100.00%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 17 Jan 2017
1 SG Corporate & Investment Banking 770.06 2 16.80%
2 Goldman Sachs 656.16 2 14.32%
3 JPMorgan 527.28 4 11.50%
4 Emirates NBD PJSC 408.38 1 8.91%
5 Deutsche Bank 321.53 3 7.01%