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Foreign Exchange Market Price Volatility Has Dropped To Nearly Two Months Low.

2015/10/21 15:48:00 15

Foreign ExchangeMarket PricePrice Fluctuation

History shows that the lack of volatility in the market will make foreign exchange pactions "unprofitable" the "culprit".

The index compiled by Parker Global Strategies LLC and Morgan chase Co. (JPMorgan Chase & Co.) shows that the correlation coefficient between the rate of return and market volatility has reached 0.92%.

If the coefficient is 1, it shows that both of them are "step by step".

As the Fed's rate hike continues to slide, US dollar net multi position contracts have fallen 60% since its peak hit in August.

The latest interest rate futures show that the Federal Reserve's probability of raising interest rates by the end of the year is 32%, further down from 41% in September 30th.

JPMorgan's global exchange rate volatility index will hit its biggest monthly decline since February, and traders expect the FED to not raise interest rates until the end of the year.

Europe, Japan,

Australia

And Sweden and other countries and regions.

Central Bank

Both hinted at the current policy measures and did not rule out the possibility of further action when necessary.

In a research report released in October 16th, JP Morgan pointed out that last week, data from the Commodity Futures Trading Commission (CFTC) showed that the neutral level of foreign exchange positions reached the highest level in more than five years.

Westpac Banking Corp. in Sydney

foreign exchange

Strategist Sean Callow said: "the biggest driver is a reduction in the Fed's interest rate hike, which has led to a reduction in the US dollar and the return of many emerging market currencies from the danger zone to a more comfortable region."

J.P. Morgan's global foreign exchange volatility index is currently 9.57%, close to its two month low of 9.55% in October 12th.

The index has fallen 1.18 percentage points since September 30th, the biggest monthly decline since February.


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