Busy FX markets ahead of today's Fed meeting

Busy FX markets ahead of today's Fed meeting

FX volatility for many of the major currencies hit multi-month highs overnight as traders anticipate an announcement from the Fed later today. The US dollar steadied while commodity-linked currencies were supported by higher oil prices.

“Life starts all over again when it gets crisp in the fall.” 

F. Scott Fitzgerald, The Great Gatsby
  • FX Rates
    September 22, 2021

    Rates are not real time. Rates are today's indicative mid-market rates as of time of publishing, which may vary. Please contact SVB for a current quote.


  • USD

    FX trading was active overnight, but the US dollar is currently only slightly changed from yesterday's close. Traders are adjusting positions ahead today's Fed meeting, with anticipation that its policy language could turn more hawkish. 

    GBP

    Sterling is trading lower on broad currency trends. Overnight volatility for the currency hit levels not seen since March, adjusting pricing for both the upcoming Fed and Bank of England meetings this week.

    EUR

    Overnight volatility for EUR/USD rose above 10% for the first time since July, ahead of the Fed’s decision later today. Traders are looking for more clarity from the US central bank regarding its plans for tapering.

    CAD
    The Canadian dollar strengthened as commodity prices traded higher. One-day volatility for the loonie soared to 20.40% which was the highest level since November ahead of the Fed meeting later today.
    ASIA/PACIFIC

    The Japanese yen weakened against its peers following statement from the Bank of Japan signaling it will hold its key stimulus tools in place due to the recent pressures on the economy.

     

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Cate Camerota
WRITTEN BY
Cate Camerota

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