Volatility in the euro is once again spilling over into the US equity market. The European currency, which had recaptured the 1.24 handle early Friday, has recently plummeted back to 1.23 against the buck after Fitch downgraded the credit rating of Spain. The news triggered a volatile reaction in the equity market and the CBOE Volatility Index (.VIX) rallied 3.22 points to 32.90 and is at session highs. Noteworthy trades in VIX Friday included June 25 – 35 bullish risk-reversals, which traded at $1.10, $1.20, and $1.30 in morning action. 64K calls and 72K puts traded total.