DXY Volatility Spikes as NFP Reports Loom

Volatility in the US Dollar Index (DXY) tends to be lower during summer months, but this year's August may have been an exception. The DXY's high-to-low range of 1.5% was its lowest since November, despite a whipsaw effect in the final two weeks of the month that covered most of August's range.

The ISM services and NFP reports are pending, and in an environment where traders are searching for Fed policy clues, there is potential for further volatility ahead. Historically, August has been the third most volatile month of the year according to seasonality.