Currency volatility falls to lowest this year ahead of US elections

Bloomberg runs a story this Tuesday, highlighting that the currency volatility dropped to fresh yearly lows amid a Dec rate hike almost sealed in, and also as markets price-in a Clinton win ahead of the US presidential election-vote next month.

Daragh Maher, head of US. currency strategy in New York at HSBC Holdings Plc, as cited by BBG, explained, “There’s a realization the dollar’s moved a reasonable amount already and you end up in this point where the markets are going to be slightly cautious about chasing the dollar too aggressively,”

“The preference of the market at the moment is still to sell the euro for the dollar on rallies, maybe to buy the dollar for the yen on any little dips, but I don’t think the extension in either direction is going to be big, “he added.

Meanwhile, The JPMorgan Chase & Co. global currency volatility index fell to 9.3%, reaching the lowest level since Dec. 8.