Currency Market Volatility Fell to Pre-Pandemic Lows And Traders Waiting For New Signals

Currency market volatility fell on Tuesday, June 8 to its lowest level since before the outbreak of the Corona pandemic, causing turmoil in the markets in March 2020, as investors refrained from forming positions, waiting for clearer signals about the path of inflation and the reactions of central banks.

Currencies seemed to be out of place with the upcoming European Central Bank meeting, which is also scheduled to release US inflation data, and the US Federal Reserve meeting next week.

The US dollar found some support on Tuesday as investors braced for the release of inflation data after weaker-than-expected jobs data, easing concerns about an early Federal Reserve scaling back.

The euro fell slightly on the strength of the dollar and data showing a drop in German industrial production numbers in April.

The dollar index rose 0.1% to 90.105, and the dollar rose against the euro 0.1% at $1.2174.

The British pound fell 0.2% to $1.4147, and the Australian dollar fell 0.2% to $0.7742, both stuck in ranges recorded over the past two months.

The Japanese yen fell as the dollar rose and hit 109.48 yen to the dollar, down 0.2% on the day.

Cryptocurrencies also fell, but trading was generally quiet. Bitcoin earlier fell to a three-week low at $1, while Ether fell 4% to a one-week low of $2,431.93.