💱High Beta Currencies Rose On The Week: Cable FX Macro

• Last week may have interrupted some people's day at the beach as the CBOE VIX Index rose to the highest level since the pandemic at 65.73, the 42.3 point increase goes against the low vol markets we have seen for the last couple of years

• It may sound odd, but last week also saw risky currencies outperform the G10 space, commodity sensitive NOK, CAD, and AUD rose by more than 1.0% while the yen and the franc fell behind

• The chart below shows G10/JPY intra-week performance. Monday's volatility took currencies down to losses in the 3.0%-5.0% range before recovering

• G10FX performance was not isolated, an MSCI EM currency benchmark rose 0.7%, its second-best week of the year. We have previously talked about how the recent spike in vol did not hurt EM carry trades as much as G10. Also, S&P 500 Index futures pared back all loses before closing at 5,370.25