Forex Volatility Levels Have Crept Higher
In March of this year, forex volatility was about as lifeless across GBP, DXY, EUR and JPY as it had been for the past five years: pretty much matching a low in October 2012. In April, volatility across those currencies was as low as it had been since before the 2008 crash, matching the record set in May 2007. July, August, May and June of this year were the four least volatile months for forex since 1994 (see chart, all data from IG’s forex pages). Before this summer, average volatility across those four currencies had only dropped below 4% once in 20 years.
