A relatively quieter day in the financial and commodity markets as US Equity indexes recovered from earlier losses to trade slightly higher in late afternoon trading, WTI Crude Oil futures prices were near steady on the day as were Treasury future prices and Bitcoin futures prices recovered a fraction of the recent declines, trading about 2.5% higher at around 3700. Implied volatility in the E-mini S&P 500 options was initially higher with the earlier price declines but was trading near yesterday’s levels in late afternoon action.
We want to keep a spotlight on the British Pound futures and options markets as volatility remains elevated while uncertainty over the Brexit deal lingers. As you can see from the graph below that depicts January implied volatility in British Pound options, the current level of 13.19% is substantially higher at this point in December than in any year since 2007, other than 2009 when Europe was in the midst of the financial crisis. Incidentally, the bottom graph shows that the price level is a the lowest level, save for 2007 as well.