FX Volatility Eases With Biden’s Rise Assuaging Election Fears
- Index of one-month volatility touches lowest level in a week
- Volatility has dropped most in commodity-linked currencies
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Currency traders appear to be mellowing a little about U.S. election risks.
Measures of implied foreign-exchange volatility have eased back from recent peaks as opinion polls indicate that former Vice President Joe Biden is increasingly likely to unseat President Donald Trump. Investors are also cautiously embracing the idea that Biden’s Democratic Party could end up controlling both chambers of Congress as well -- a situation referred to by many as a blue wave.