Euro’s Volatility Kink Shows Traders Fixated on Homegrown Risks
- Traders brace for euro swings into ECB’s September meeting
- Currency could hit $1.20 if Greens win German vote: Nomura
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After a month of being whipsawed by external forces, euro traders are starting to turn their attention to risks closer to home.
The euro’s volatility curve shows they’re putting emphasis on the European Central Bank’s September gathering, when policy makers could give an indication of plans to pare back emergency bond purchases. Traders are betting the event will drive bigger swings than this month’s annual Jackson Hole symposium for global central banks, which had delivered policy surprises in the past.