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the us election and the global interest rate cuts are about to begin! is the global foreign exchange market about to enter a "chaotic era"?

2024-09-13

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cailianshe news, september 13 (editor: xiaoxiang)investors in the foreign exchange market are facing a tough time right now as the dollar's movements are likely to become increasingly unpredictable. after this week's u.s. presidential debate and the release of key u.s. cpi data, market participants expect volatility in the currency market to rise further by the end of the year.

currency traders have been struggling to cope with a dizzying array of news factors recently. a set of data shows that as the federal reserve prepares to cut interest rates next week and the us election is imminent, an indicator measuring the implied volatility of the us dollar in the next three months has now hit its highest level since the regional banking crisis in early 2023.

some industry insiders said that the key to current foreign exchange trading is still to grasp the fed's moves. they expect the fed will continue to be the main driving force affecting the trend of the us dollar. in addition, people also need to carefully judge whether the market has reasonably priced the difference between the fed's monetary policy easing degree and that of other major central banks, and weigh in-depth how to plan for the us election in november.

of course, in addition to the risk points mentioned above that can lock in dates, currency traders may also have to deal with a series of escalating geopolitical tensions in the coming months, which may affect the foreign exchange market in unpredictable ways.