Anchored volatility doesn’t make FX ‘safe’ – SocGen

Kit Juckes, Research Analyst at Scoiete Generale, suggests that it will take a Fed policy shock to drive a marked move higher in global volatility.

Key Quotes

“The FOMC is working overtime to make sure that whatever they do in their next two meetings, it won’t be a surprise when/if it happens.

The EUR/USD looks all bottled up in its range unless they make a mistake. The GBP/USD, by contrast, looks like an accident waiting to happen. We like being short AUD and NZD too.”