Monex Europe: A broadening in the drivers of FX volatility

Monex Europe: A broadening in the drivers of FX volatility

5 oktober 2022

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In his month’s FX Forecast, Simon Harvey, Head of FX Analysis at Monex Europe, says the following:

“Monumental. Historic. Chaotic. These are just a few adjectives that characterise the last month of trading in FX markets. Over the course of September, FX traders had to endure volatility that hasn’t been witnessed since the onset of the pandemic as the Federal Reserve upped the ante with its hawkish messaging, Asian central banks started to intervene to slow the depreciation of their currencies, and the latest UK budget resurrected the bond vigilantes. Although the dollar retreated towards the end of September, likely due to position trimming on month-end/ quarter-end, we think it maintains a firm structural basis to climb back to its September highs in Q4, however, intense cross-asset volatility may start to mask the underlying trajectory.”

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