Forwards spreads fall but won’t hit January levels, say traders

While bid/offers have shrunk since March’s highs, dealers expect them to remain elevated

The New York Fed rolled out dollar swap lines to a clutch of central banks in March

The Federal Reserve’s US dollar swap lines have helped reduce bid/offer spreads in the foreign exchange forwards market that had soared during the volatility in March, but traders believe they will remain elevated above January levels for some time.

When market conditions started to deteriorate at the beginning of March, the head of FX forwards at one US dealer says that spreads “massively increased” – in particular, dollar/yen forwards spreads were said to be almost 20 times wider than usual

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact customer services -, or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a FX Markets account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: