Traders Lament Death of FX Volatility as Torpor Tanks Returns

Lack of price swings fuels worst FX manager slump since 2011
Wrong-way dollar wagers also to blame as greenback slides

BS Wealth Management’s Dominic Schnider discusses volatility in the markets and his outlook for the U.S. dollar.(Source: Bloomberg)

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By Alexandria Arnold

December 10, 2017 at 9:00 PM UTC

Updated on

December 11, 2017 at 3:55 PM UTC

This article is for subscribers only.

While most traders would hardly describe 2017 as “dull” -- what with the nuclear brinkmanship, disintegration of global trade alliances and numerous presidential tweet storms -- one thing has remained conspicuously absent: volatility.

For FX-focused funds, the lack of price swings has stung particularly hard. The Citi Parker Global Currency Manager Index, which tracks the performance of 14 FX programs representing nine distinct investment styles, has declined almost 4 percent this year, the most since 2011.