December 3, 2018 / 9:27 AM / 11 days ago

Currency swing gauges drop after U.S.-China broker trade war truce

LONDON, Dec 3 (Reuters) - Market gauges of expected moves in the value of the Chinese yuan and other trade-dependent economies such as the Austalian dollar and the Singapore dollar dropped after the United States and China agreed for a ceasefire in their trade war.

Implied volatility in currencies generally picks up when investors and corporate treasurers rush to hedge their exposure in the foreign exchange derivative markets due to growing expectations of losses on the back of a pick up in swings.

Currency volatility has been generally elevated this year due to rising tensions on the back of growing fears of a trade conflict between Washington and Beijing.

But the weekend news pushed such market gauges lower.

Implied volatility measures on the Chinese yuan fell to more than one-month lows at 5.3 percent while similar indicators on the Aussie and the Singapore dollar slipped to multi-month lows. (Reporting by Saikat Chatterjee and Marc Jones; Editing by Abhinav Ramnarayan)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below