⚠️💵 Dollar Moves -/+ 1% As VIX Holds Above Long-Term Avg.: Cable FX Macro

• For the last 10-years, the CBOE VIX Index holds an average of 18.0. While it recently broke above 20.0 to fade the upside, the volatility gauge remains above its long-term average

• When compared to the performance in our measure of the dollar, <.RDDXY> Cable FX Macro Dollar Index, the greenback tends to see daily returns dispersing beyond the -/+ 1% band when the VIX stands above its long-term average

• The level of the VIX and dollar returns see a positive beta, focusing on a VIX level from 18-25, the skew favours dollar upside, with daily gains recorded above 2.5% (tail event)