U.S. Inflation Data Spike Finally Spurs an FX Trader Awakening

  • Volumes in euro futures are jumping as the currency rises
  • Moves from expensive U.S. assets take a toll on the dollar
Is Hot Inflation Fully Priced Into Markets?
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U.S. inflation data has triggered a year-to-date high in speculative currency trading after a quiet start to 2022.

Volumes in euro futures jumped once the common currency topped 1.14 versus the dollar for the first time in nearly two months. A look at contract activity over a 30-minute interval shows turnover popping to levels not seen since the outbreak of the omicron variant in late November: