Volatility Ratchets Higher as Global System Outage Hits Markets
A flight to safety in currency markets is slowly unwinding this morning, but jitters remain as traders gain a better understanding of how a worldwide software outage is impacting the global financial system. Airlines, telecommunications firms, banks, and stock exchanges are suffering service disruptions after an update from the CrowdStrike cybersecurity firm reportedly took down systems running Microsoft’s Windows operating system, but price action in the foreign exchange pairs we track remains consistent with typical liquidity conditions, suggesting that market participants are finding ways to transact. The technological tumult comes after days of strange weather in financial markets, with shifts...