Currency Swings Evaporate as Central Banks Shy Away From Action
- JPMorgan Global FX Volatility Index drops to two-month low
- ECB, BOJ, RBA signaling comfort with current policy settings
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Expectations for price swings in currency markets fell to a two-month low as central banks disappoint traders hoping for bold policy actions.
A JPMorgan Chase & Co. gauge of global currency volatility headed for its biggest monthly decline since February as traders anticipate the Federal Reserve will delay increasing interest rates until next year. Commodity Futures Trading Commission data last week showed currency positioning is the most neutral in more than five years, JPMorgan said in a note last week. The yen barely budged after a government report showed Japan’s export growth slowed in September.