The US dollar has had a very interesting start to 2019. Unlike equity markets which have seen a sharp rebound rally through Q1, the US dollar has found itself locked in an ever tighter trading range. As such, a key risk indicator has lit-up… or more appropriately, crunched-down. The chart shows the average 1-month option implied volatility for the US dollar against developed market currencies. The key point is that FX implied volatility has crunched down toward record lows.