What will the oil market, Fed do next? Jul 10, 2019 What Options Are Signaling for Oil Market, Fed Direction By Erik Norland, Senior Economist, CME Group Oil: What Are Options Signaling? Is extreme negative options skewness signaling a rally in the oil market? Prices have often rallied after instances of extreme negative options skews The inverse relationship is even stronger in heating oil, ULSD gasoline But prices could be pressured by rising US output, slack China growth Watch Video High Risks, Low Implied Volatility Options implied volatility in most markets is extremely low despite high risks Implied volatility in EUR/USD and GBP/USD is near record lows Fed’s nine rate hikes since late 2015 have helped to flatten the yield curve Could volatility surge if Fed does not cut rates enough to steepen yield curve? Watch Video SEE MORE ANNOUNCEMENTS
