Currency volatility approaching record........>

FOREX: Currency volatility approaching record levels

- It's been a notable session so far, to say the least. The equity rout

extended, prompting limit down alerts in US equity futures as the e-mini S&P

traded lower by 5%. That remains the case at typing, setting Wall Street up for

an ugly market open in a few hours' time. Currency implied volatility is nearing

record levels, with USD/JPY 1m implied contract nearing the highest level since

the height of the Global Financial Crisis.

- The moves follow the much-covered plummet in oil prices as Saudi Arabia

committed to opening the production taps, leading oil futures to touch the

lowest levels since 2016. This has roiled the currency markets across

effectively every currency, prompting oil- and growth-tied currencies to shoot

lower. The main beneficiaries are unsurprisingly safe havens, with JPY and CHF

outperforming.

- Canadian housing data (starts and building permits) are the sole data due

Monday. There are no speakers of note, keeping focus on the outsized market

moves today.