Euro Volatility Pickup Signals Heightened Risk on Yellen: Chart

How the Euro Is Reacting to Possible Fed Move

The cost to hedge against near-term price swings in the euro is on the rise as investors brace for remarks from Federal Reserve Chair Janet Yellen. The premium on one-week euro-dollar volatility over the one-month measure reached the most since May 5, as the one-week tenor captures Yellen’s June 6 speech in Philadelphia. The spread hit positive territory for the first time since the one-month volatility gauge started capturing the June 23 referendum on the U.K.’s European Union membership.

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