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Settling into summer ranges
It is starting to look as though FX markets are settling into summer ranges. Volatility at the short end of the options curve is sinking and even in US equity markets, the VVIX, or the first derivative of volatility, is also softening up as well. It may well be then that the busy data calendar this week ahead of the 4 July holiday may be a last opportunity to see some range breakouts/define trends, before volatility sinks even further. As we discuss in the G10 FX Week Ahead, this week sees nonfarm payrolls, the ISM and a few Federal Reserve speakers. It is early days, but we do get a sense that markets are starting ... (full story)