FX market volatility jumps ahead of US election outcome – Reuters

Dhwani Mehta FXStreet

Traders remain well-positioned for more volatility ahead of the US election outcome next week, as reflected by the barometers for implied currency swings in the $6.6 trillion a day foreign exchange markets, per Reuters.

Key takeaways

“Contracts for euro and Japanese yen one-week implied volatility versus the US dollar expiring in a week climbed to their highest levels since early April before the U.S. Presidential elections on Nov. 3.”

“The spurt in short-end volatility indicators indicate concerns around the US election outcome, even though odds have stabilized this week.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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