28.12.2016 • 12:00 GMT
EUR/USD, USD/JPY, GBP/USD Volatility Extreme Even for Holiday Conditions
John Kicklighter
• Volatility naturally deflates through year's end as holiday conditions curb market participation
• The sudden slump in volatility in the past week relative to the past month has been particularly extreme for the Dollar
• We use a 5-day to 20-day ratio to assess the change in activity levels from a historical perspective