This suggests broader equity markets may enter a choppier trading environment as earnings season intensifies. Risk parity strategies are being adjusted accordingly. The declining U.S. dollar index signals an erosion in the faith and credit of the world’s leading fiat currency. Gold has surpassed the euro as the world’s second-leading reserve currency. A falling dollar could impact demand for U.S. equities, potentially increasing the volatility index. Latest VIX futures Barchart data shows the March contract trading near 15.82, a slight uptick from last week’s 15. VIX futures Barchart has recorded modest afternoon strength in front-month contracts, possibly on technical trading ahead of FOMC minutes. Traders with leveraged equity exposure are recalculating value-at-risk metrics.
