The Cboe EuroCurrency Volatility Index (EVZ) measures the market's expectation of 30-day volatility in the EUR/USD exchange rate, derived from options prices on the euro. It is often referred to as the 'Euro VIX' and serves as a gauge of currency market uncertainty. Forex traders monitor the EVZ to assess risk levels and adjust position sizing, as rising volatility typically signals increased uncertainty around eurozone monetary policy or geopolitical events.
Example
“The EVZ spiked ahead of the ECB meeting as traders braced for a potential surprise rate decision.”