• FX volatility smoothens a little bit as markets digest rate path repricing

• Volatility in commodities still high amid resurgence of geopolitical tensions

• Stock indices and Bitcoin still volatile while traders unwind bearish bets 

Recession concerns from a weaker-than-expected NFP report two weeks ago have been fading, though they led to notable adjustments in expectations about major central banks’ interest rate paths.

For that reason, volatility in FX pairs has been elevated, albeit a tad softer than last week. The yen crosses remain the most volatile as the BoJ has scrapped its hawkish tone following the domestic stock market slump and a severe earthquake in the region.

In the meantime, volatility in commodities has been hovering at the top of its range, fueled by increasing activity in the geopolitical hotspots of Ukraine and the Middle East. Moreover, Bitcoin was notably the most affected by recent market turbulence, with its volatility remaining high as it gradually recovers from the recent selloff.

Finally, stock indices have seen a slight reduction in volatility as recession fears have subsided. Markets seem to have deemed last week’s overreaction excessive, given that investors appeared more than eager to buy the recent dip.