⚠️💱Dollar-Volatility Spread Widens By 2-Standard Deviations: Cable FX Macro

• The spread between the Cable FX Macro Dollar Index and a dollar implied vol index constructed by Bloomberg has widened to the highest since February 2022, preceding the invasion of Ukraine

• Looking at a one-year history of the spread, the latest read shows the differential 2-standard deviations from its mean

• The long-term correlation is now at the lowest since February 2021 at 29%.