Recent forex market moves have led to a sharp advance in forex options market volatility expectations, making short-term forecasts especially difficult and warning of large US Dollar moves ahead. Shifts in FX Options risk reversals have been especially dramatic in fast-moving pairs such as the British Pound/US Dollar and US Dollar/Swiss Franc.

Recent forex market moves have led to a sharp advance in forex options market volatility expectations, making short-term forecasts especially...

orex market volatility expectations have edged higher through the past week of trade, but relatively depressed absolute levels suggest that currencies will continue to see smaller moves in the week ahead. The Euro remains in a contained 200-point range against the US Dollar since June 14, and continued attempts at breakouts have been met with failure.

Market Conditions Summary

Forex market volatility expectations have edged higher through the past week of trade, but...