US Greenback, S&P 500 Surge as VIX Retreats, FX Volatility Climbs

VIX INDEX PULLS BACK BUT FX VOLATILITY REMAINS ELEVATED AS US DOLLAR, S&P 500 INDEX SPIKE

• Cross-asset volatility measures stay extraordinarily excessive as international markets climate turbulence from the brewing coronavirus pandemic
• The S&P 500 Index jumped 6% and the VIX fell from a near-record excessive as shares rebounded from their current rout amid promise of huge financial and monetary stimulus measures
• FX volatility continues to climb as USD worth motion and the broader US Dollar Index rip larger

A turbulent buying and selling session left the S&P 500 Index 6% larger on Tuesday. Shares rejoiced headlines that crossed the wires alluding to monumental fiscal stimulus plans from the Trump administration. The White Home is reportedly looking for ‘$1 trillion or extra’ in stimulus because the deepening coronavirus pandemic wreaks havoc on the US economic system.

CHART OF S&P 500 INDEX OVERLAID WITH VIX INDEX

Chart created by @RichDvorakFX with TradingView

Because the inventory market and investor sentiment recovered, the VIX Index, which displays anticipated…