Traders Bet ‘Insane’ Currency Volatility Is Here to Stay
A screen displaying currency rates in Tokyo, on April 8.
Photographer: Kiyoshi Ota/BloombergThis article is for subscribers only.
Currency traders are positioning for turbulence in currency markets to get even worse as an escalating trade war shakes up the global economic order.
The dollar and its peers have been whipsawed by some of the sharpest price swings since the 2008 financial crisis, as conflicting tariff messages from US President Donald Trump keep markets on edge. Options volumes surged to a record last week and uncertainty around the trade war has now pushed expectations for volatility in the next month to a two-year high.