Dollar Volatility Looms as Fed Signals Leave Traders Guessing

FX traders are bracing for dollar volatility ahead of Friday's US payroll numbers as Federal Reserve Chairman Kevin Warsh leaves Wall Street guessing at his next move.

The Fed chair's pullback on forward-looking guidance for interest rates has driven up market turbulence, making each economic readout all the more important.

The cost of one-day option contracts tied to the Bloomberg Dollar Spot Index jumped to its highest since July 30, reaching a level that reflects growing uncertainty about the dollar's future performance.