FX market volatility jumps ahead of US election outcome – Reuters

Traders remain well-positioned for more volatility ahead of the US election outcome next week, as reflected by the barometers for implied currency swings in the $6.6 trillion a day foreign exchange markets, per Reuters.

Key takeaways

“Contracts for euro and Japanese yen one-week implied volatility versus the US dollar expiring in a week climbed to their highest levels since early April before the U.S. Presidential elections on Nov. 3.”

“The spurt in short-end volatility indicators indicate concerns around the US election outcome, even though odds have stabilized this week.”