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.”
September 22, 2021
EUR/USD 1.1731 GBP/USD 1.3626 USD/CAD 1.2794 AUD/USD 0.7250 USD/JPY 109.55 USD/CNH 6.4685 USD/ILS 3.2045 USD/MXN 20.0925 USD/CHF 0.9225 USD/INR 73.8685 USD/BRL 5.2705 USD/SGD 1.3517 USD/DKK 6.3385 USD/SEK 8.6770 USD/NOK 8.6375
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.CADThe 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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