Volatility falls into holiday-shortened week
Goldilocks is eating everybody’s porridge this morning, ignoring her mama’s warnings about ruining her appetite for Thanksgiving. With markets increasingly convinced the US economy is headed into a period of not-too-warm, not-too-cold growth, the dollar is trading at its lowest levels in more than two months, Treasury yields are holding steady, and equity futures are edging higher ahead of the open. Implied volatility measures continue to trend lower across asset classes. Currency markets are exhibiting typical “dollar smile” dynamics as a narrowing in expected growth rates and a drop in US rate projections helps spark a recovery in outbound capital...