Implied volatility is a measure of the market’s expected future volatility of a currency exchange rate from now until the maturity date. Below we have posted a graph showing the increasing volatility of the Canadian dollar relative to the U.S. dollar. It is fair to say that this graph shows that volatility has been increasing and remains reasonably high in this relative term. The final general observation is that this relationship has sharply increased since June of 2014. The future, as always, remains undetermined.
Source: VIP Wealth Solutions and Bloomberg