Currency Traders Brace for Wild Ride as Volatility Curves Invert
- Gauges of short-term price swings exceed longer-term measures
- Hedge funds are preparing for more turbulence after Q1 losses
Is the Global Currency War Over?
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The $5.3 trillion-a-day foreign-exchange market is getting turned on its head.
For the first time since 2010, traders of all five of the world’s most-transacted currency pairs are more wary of price swings in the next three months than over the next year. Typically, longer-term measures of volatility are higher to account for future uncertainty.