FX Volatility Increases Before U.S. Data and ECB

A measure of global currency volatility climbed to the highest level in eight weeks as investors weigh the potential impact of growth indicators and monetary policy decisions in the world’s biggest economies.

JPMorgan Chase & Co.’s Global FX Volatility Index advanced for a fourth day ahead of U.S. government figures forecast to show the economy expanded in the third quarter and payrolls increased last month. The yen remained higher versus its 16 major peers as Asian equities fell. The euro held a two-day gain before the European Central Bank sets monetary policy today. The pound traded near the highest in more than two years before the Bank of England decides on interest rates.

“After what has been a relative dearth of U.S. data, markets have swung back to focusing on the U.S.,” said Callum Henderson, the Singapore-based global head of currency research at Standard Chartered Plc. “We’re going to see more choppy price action from now until year end.”


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