Currency Traders Bet on Market Volatility Returning With Trump

From bnnbloomberg.ca

Currency traders are betting that Donald Trump’s policy agenda is about to jumpstart volatility in the $7.5 trillion-a-day foreign exchange market. After years of benign moves, a gauge of one-year volatility on the euro-dollar exchange rate surged after the election. Hedge funds are scooping up options contracts that pay out if currency swings increase and strategists have dramatically revised their currency forecasts. While it’s not yet clear how quickly Trump will implement policies such as trade tariffs that could cause significant pain to currencies like the euro, investors are pretty certain that ... (full story)