FX volatility rouses from hibernation
Volatility picks up on back of fluctuating US-China trade tensions and central bank easing
Foreign exchange volatility started to rebound at the beginning of August from its multi-year lows, as trade relations between the US and China continue to oscillate and central banks embark on an easing spell.
The JP Morgan Global FX Volatility Index reached 8.27 on August 12; an increase of 35% from the low of 6.02 on July 12 – a level not seen since 2014.
The uptick in FX volatility began at the start of August when the index jumped 4% as US president Donald Trump tweeted that a 10% tariff
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