Markets opened higher Monday, rebounding from Friday's steep decline, but the CBOE Volatility Index (VIX), considered the measure for fear in the market, neared 30.
Art Cashin, director of floor operations at UBS Financial Services, shared his insights.
Volatility is "all about the dollar—the dollar became a funding currency when they started to do the dollar carry trade and it’s got everyone nervous,” Cashin told CNBC.
Stocks zigzagged last week, ultimately ending the week and the month of October with a thud.
“I expect that there is a risk that [the uncertainty] could continue if the dollar remains this volatile,” he said.
“I think it will be dangerous if we break 1,030 [or] 1,025 on the S&P—that may call for a further leg down. It’s time to be nimble and be very cautious.”
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No immediate information was available for Cashin or his firm.