Yen Strengthening May Signal Higher Stock Market Volatility Ahead

The jobs report tomorrow may not have the usual impact on stock market volatility due to the prolonged poor performance of labor data, according to Michael Kramer from Mott Capital Management.

Kramer notes that the VIX 1-day rose to 10.9, but it's possible that the market has already priced in any nervousness, making a post-report volatility crush unlikely.

The yen strengthened against the dollar, with USD/JPY falling by 1.85%, as traders bet on the Bank of Japan hiking rates.

Kramer highlights a potential relationship between the yen and index volatility, citing a historical correlation between the two. He points out that when the yen strengthens, implied correlations tend to increase, leading to higher stock market volatility.