On a day that was supposed to be as quiet as they get, the now traditional spike in FX vol that we have been observing for the past two months (even as the VIX has plunged to year lows) is back like clockwork. As the chart below shows, the EURUSD is now well over 100 pips higher on the day, and is back to early December levels. The reason, according to some, is that the various global banks, mostly French and US, who have been buying the billions in EURs sold by assorted central banking cartels in the past few months, starting with the BIS and going down, are engaged in some good old fashioned window dressing. There was a time when window dressing applied to stocks. With that now completely priced in, it is time to move on to FX, and shortly thereafter, gold. And speaking of the latter, with the yellow metal at $1,417, and just dollars away from the all time high, it would not be too surprising to see the best performing asset class tracked by Reuters to close the year at an all time high.