Foreign Exchange Market Volatility Has Been The Biggest In Four Years.

This year, foreign exchange market volatility has been the biggest in four years, but the decision of the Federal Reserve to postpone raising interest rates or make it harder for the foreign exchange market to ease.

JP Morgan's global foreign exchange volatility index rose to 11.3% in the first ten days of the Fed's resolution (September 7th), the largest since February of this year.

Since September 17th, the index has been the highest since 2011.

The Fed explained that overseas factors were rarely mentioned in the absence of interest rates in September, which means that the market can no longer focus on US inflation, but also focus on global inflation.

Rick Rieder, chief investment officer of fixed income, said there will be more volatility in the foreign exchange market.

Greg Peters, chief investment officer of the Prudential Financial Inc fixed income department, said in its mail that volatility will continue as the Fed continues to inject uncertainty into the market.

He said that the Fed's interest rate hike is worse than the rate hike now, and international market volatility and risk events are not two days a day.

As the Fed seeks to become more pparent about interest rate policy standards, the market has to chew every report the Fed looks after.

Last week, the Fed showed no signs of slowing down, even though the labour market grew.

Failure to achieve goals.

Morgan Stanley suggests buying the option to take advantage of the fluctuations in the pound.

Besides,

Volatility increases the opportunities for foreign traders to make money, but for firms, hedging exchange rate risks become more difficult.

The ECB and the Bank of Japan may benefit from their weaker currencies.

If they do not move, they will be more relaxed. This will bring greater uncertainty to the foreign exchange market.

Morgan Stanley analyst Calvin Tse and Evan Brown wrote in the research report that the Fed's attention to data, currency reserve decline and regulatory changes mean that the Fed's interest rate hikes will cause greater price volatility than before.