The illusion of low volatility in the foreign exchange market is beginning to unravel, potentially delivering a fatal blow to carry trades.

Recurring shifts in expectations for Federal Reserve rate hikes and persistently heightened geopolitical tensions in the Middle East are undermining the fragile equilibrium that has supported low volatility in foreign exchange markets. The options market has already priced in anticipated volatility ahead of next week’s U.S. inflation data, with leveraged funds positioning themselves to bet on rising volatility.

Golden10 DataJul 10 20:28

Express News | Ministry of Economy and Finance of Korea: Korea issued EUR 1.7 billion in foreign exchange stabilization bonds at a historically low spread.

BreakingsJul 9 10:01

Central Banks Plan First U.S. Dollar Decline in 3 Years; Gold & Euro Winning

Seeking AlphaJul 8 00:51

Sterling rose for a ninth consecutive session to hit a three-week high against the U.S. dollar, as plunging oil prices and diminished expectations of Federal Reserve rate hikes jointly fueled the rally.

The British pound rose to a three-week high against the U.S. dollar.

Zhitong FinanceJul 7 17:15

The Strait of Hormuz alert remains, yet U.S. data has sounded the alarm on an economic slowdown—where is EUR/USD headed next?

During the Asian session on Monday (July 6), the euro traded in a narrow range around 1.1435, consolidating near its highest level in nearly two weeks. Escalating tensions in the Strait of Hormuz continued to fuel safe-haven demand for the U.S. dollar, capping the euro’s upside. However, weaker-than-expected U.S. employment data released last week dampened market expectations for further Federal Reserve rate hikes, limiting the dollar's gains. Meanwhile, softer inflation data from the eurozone cooled bets on European Central Bank rate increases, prompting euro bulls to remain cautious. Market participants are now awaiting key data releases—including German factory orders, the eurozone Sentix investor confidence index, and the U.S. ISM Services PMI—for fresh directional cues.

FX678 FinanceJul 6 12:03

Dow Jones Top Markets Headlines at 5 PM ET: U.S. Snaps Hiring Hot Streak With Only 57,000 Jobs Added in June | U.S. ...

Dow JonesJul 3 05:00