Fed-Ready Currency Traders Calm About December After Stormy 2015
- Euro swings in tightest range in more than three months
- Currency implied volatility falls below 10-year average
Will Fed Rate Hikes Be Small and Gradual?
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Currency traders are giving the Federal Reserve a green light for its first interest-rate increase in almost a decade.
After a year of surprises that saw exchange-rate volatility climb to its highest since 2013, measures of future price swings have fallen back below the 10-year average, a sign the market is sanguine about tighter central bank policy. The euro fluctuated in the narrowest range last week versus the dollar in more than three months.