FX option selling and weak demand behind vol slide, say traders

- By Ben St Clair
- 17 Aug 2021

The return of volatility sellers and a lack of directional interest from fast money have combined to grind foreign exchange vol down towards pre-Covid levels, say options traders. Even though inflation could revive this corner of the market, it’s not clear whether FX will see the full benefit.

“I don’t expect there’s going to be much meaningful demand for vol, at least in the very near future,” says Ankur Dhingra, co-head of FX options trading at JP Morgan.

Vols have waned since Covid-induced

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 info@fx-markets.com or view our subscription options here: https://subscriptions.fx-markets.com

You are currently unable to print this content. Please contact info@fx-markets.com to find out more.

You are currently unable to copy this content. Please contact info@fx-markets.com to find out more.

As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.

If you would like to purchase additional rights please email info@fx-markets.com

You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.

If you would like to purchase additional rights please email info@fx-markets.com