Intra-Day Volatility Falls As Newsflow Grinds To A Halt
Currency markets are turning in a mixed performance this morning amid an utter lack of new volatility catalysts. The dollar is holding steady in line with placid Treasury yields, most major currencies are trading within 20 basis points of yesterday’s close, and the yen is giving back some of yesterday’s gains after Prime Minister Ishiba’s governing coalition suffered losses in the weekend’s election. In the background, the dollar’s rebound appears to be fading. After investors spent much of early July correcting overly-bearish views on the American economy’s prospects by pushing monetary easing expectations back, short-term interest rates are reaching levels...