

FX vol revived by Covid-19 – but for how long?
Traders split on whether virus impact or central bank responses will prove most powerful
The spread of Covid-19 has jolted foreign exchange volatility into life, and central banks into rescue mode. For FX traders, it’s not clear which of these two forces – illness or interest rates – will prove most powerful.
Will the spreading coronavirus – and attendant fears of a global economic slowdown – set off successive waves of currency trading? Or will the steadying hand of the central bankers see the market quickly return to its pre-virus torpor?
“Without a doubt there’s been a major
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