A reminder that 2019 "stock and bond markets ripped higher", with "double-digit returns for investors".
Meanwhile foreign exchange
- Trading ranges for major currencies were the narrowest since the Bretton Woods system broke up, and the modern FX market began to take form, back in 1973.
- Extremely low volatility occurred in 1996, 2007 and 2014, … each period was followed by an explosion in price swings
The usual suspect(s) for low vol:
- central banks are largely moving in lockstep, the gaps between major interest rates - key drivers of moves in exchange rates - have compressed.