Forex
Dollar Volatility Expected Ahead of US Payrolls Report
FX traders are bracing for dollar volatility ahead of Friday's US payroll numbers as Federal Reserve Chairman Kevin Warsh leaves Wall Street guessing about his next move.
The Fed chair's pullback on forward-looking guidance for interest rates has driven up market turbulence, making each economic readout crucial. The cost of one-day option contracts tied to the Bloomberg Dollar Spot Index jumped to its highest since July 30.
One-week volatility also climbed on Thursday, which includes payrolls data and next week's report on inflation. This increased uncertainty is putting pressure on traders to hedge against swings in the US dollar.