Euro Volatility Jump Lifts Cost to Hedge French Vote Risk: Chart

Mounting euro-area political risks centered on France are driving up the cost of hedging against fluctuations in the common currency. The implied volatility on three-month euro-dollar options, whose tenor now captures the final round of French presidential elections due May 7, surged 100 basis points Wednesday to 10.25 percent. That’s the biggest increase since mid-December and the highest level in more than a month.

Watch Next: Allianz's MacDonald: Euro an Immediate Risk to Europe

Before it's here, it's on the Bloomberg Terminal.
LEARN MORE