Where Money Managers See Dollar Going as Fed Cuts, US Votes
- Escalating geopolitical tension also complicates positioning
- Measure of expected three-month dollar volatility has risen
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All signs point to a tough few months ahead for investors charting the dollar’s path, after the US presidential debate and a key inflation reading left markets anticipating heightened volatility through year-end.
Currency managers are grappling with a dizzying array of cross-currents that stand to ramp up gyrations in exchange rates even further. With the Federal Reserve poised to cut interest rates next week and US elections looming, a measure of implied three-month volatility for the greenback is about as high as it’s been since the regional-banking crisis in early 2023.