OpenMarkets Weekly: FX Volatility

At a Glance

  • The Yen and Swiss Franc have highlighted the need for access to FX markets during the virus crisis

The volatility experienced this spring in the 7 trillion-dollar foreign exchange market was unprecedented.

The JP Morgan G7 FX Volatility Index rose to its highest level in eight years in March, and price action in the Yen and Swiss Franc currencies highlighted the need for access to these markets during the virus crisis. Both currencies are looked upon, along with the U.S. dollar, as a perceived safe haven when global funds and investors become risk averse. The need for U.S. dollars also plays a large role.  As investors flocked to the U.S. treasury markets, the need for dollars from investors around the world created increased demand.

Jack Bouroudjian covers the suddenly volatile FX markets in this week’s episode above.

OpenMarkets is an online magazine and blog focused on global markets and economic trends. It combines feature articles, news briefs and videos with contributions from leaders in business, finance, economics and politics in an interactive forum designed to foster conversation around the issues and ideas shaping our industry.

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