FX Volatility Sags Below August Norm as Traders Seek Fed Signals
Television stations broadcast Chairman of the US Federal Reserve Jerome Powell on the floor of the New York Stock Exchange.
Photographer: Michael Nagle/BloombergVolatility in the currency market is breaking with historical patterns this August, sliding to the lowest in a year instead of staging a usual seasonal rebound.
An extended summer lull has come as investors are waiting for clearer signals from the Federal Reserve before taking big bets in the $7.5 trillion-a-day market. While volatility has been sliding for months ever since tariff shocks roiled world trade in April, typically traders would start prepping by now for any risky events heading into the end of the year.