⚠️Cross-Asset Volatility Declines Further: Cable FX Macro

• Measures of implied volatility in a variety of asset classes are pressured after the U.S. February CPI report, FX volatility is now at the lowest level since September 2021

• A downtrend has been recorded since 2023, the March banking episode turned the gauges higher, however, the spike in vol lost traction and the move faded quickly

• Short vol has been the name of the trade over the last couple of years. Risk assets hit record highs, crude oil remains within ranges and treasury yields failed to recover ground

• Unsure what could be the next catalyst for vols to reverse the trend as central bankers are expected to start easing policy by the Summer