Volatility in Currencies Worldwide Slumps to Lowest Level Ever
- JPMorgan’s gauge of FX swings hits milestone after trade deal
- Commerzbank fears market’s ‘ability to reflect fundamentals’
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Stocks may be grabbing most of the headlines, but equities aren’t the only asset class in uncharted territory.
Global currency volatility has dropped to the lowest level ever recorded. Less than 48 hours after the U.S. and China put pen to paper on a trade deal that reaffirmed an agreement not to devalue their currencies, the JPMorgan Global FX Volatility Index -- which tracks the options market to measure expected price swings -- is trading lower than at any point since it was created almost three decades ago.