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FX Faces Risk of a Virus Shake-Up Even as Fed Anchor Remains
The market horizon is littered with risks that could trigger bigger moves in currencies even as the Federal Reserve and other central banks double down on the policies that have anchored volatility close to historic lows. Growing concern about the prospect of a second wave of coronavirus turmoil and potential variations in how well different economies bounce back from recession have helped fuel a recent uptick in foreign-exchange volatility, while uncertainties also swirl about China-U.S. tensions, America’s presidential election and what path the European Union chooses to take. And with the recent rally in riskier ... (full story)