Review of 2025: A topsy-turvy ride
Rollercoaster year for FX traders ends with G10 volatility and hedging flows back where they started
Anyone comparing year-over-year volatility metrics might conclude it has been a quiet 12 months for currency markets.
Nothing could be further from the truth.
Liberation Day in April saw the long-awaited return of currency volatility, as US president Donald Trump’s tariff announcements sent markets whipsawing and caused long-standing correlations to break down.
Since then, currency volatility has reverted to the mean, ending 2025 at pre-2024 election levels.
Negative sentiment towards the USD could
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