Unusually Low Volatility in the Currency Markets in 2019

The G10 currencies are ten of the most heavily traded currencies in the world, which are also ten of the world's most liquid currencies. Traders regularly buy and sell them in an open market with minimal impact on their own international exchange rates.

When volatility is unusually low in the G10, this can create obstacles for trading strategies (reversals, grids, divergence, etc...) that rely on volatility in order to capture profits. The chart above (which is posted here from The Daily Shot Brief and sourced from Alpine Macro) displays that currency volatility in the G10 was the lowest it has been since 1995. 

Here at Exequor Capital, several of our automated algorithmic trade signals rely on volatility to operate correctly in the market. We are excited to see what 2020 will bring and hope that volatility returns to the G10 currencies markets.