FXStreet (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale, sees volatility returning to low levels.
"EUR/USD traded within a 20 pip range yesterday, as did USD/JPY. Implied vol has generally settled down lower since last Thursday, particularly following stabilisation in global equity markets."
"US equities recovered some poise yesterday, responding to the fall in Treasury yields that followed Friday's employment report".
"It looks like an environment that is dollar-negative and friendly for higher-yielding currencies yet there remains an edginess to the mood and unless the S&P500 gets back above 1950 we will remain in a 'sell rallies' mood for EMFX, as well as AUD, CAD and NZD. Today's economic calendar will give us services PMIs in Europe and the US (ISM), but these are unlikely to affect the mood much."