ECB Faces Low Expectations as Volatility Lags 2016 Levels: Chart

The Calm Before the Storm? Draghi May Shake Things Up

Overnight option volatility in euro-dollar before Thursday’s European Central Bank rate decision pales in comparison to levels seen ahead of prior meetings in 2016, a sign that investors are aligning with analysts in expecting little from the event. The gauge stands at 12.54 percentage points, the lowest reading among days that preceded an ECB decision this year.