Currency markets have moved beyond the “Trump shock” that sparked big gyrations earlier in the year, as measures of dollar volatility tumble to levels last seen before the US presidential election.
Expectations of swings in the dollar’s value against the euro and the yen, which spiked following Donald Trump’s election last November, have fallen this month to their lowest in more than a year, according to indices provided by CME Group.
At the same time the US dollar index, which measures the greenback against a basket of currencies including the pound and the euro, has regained some of the year’s sharp losses to trade close to its level before it began to surge in the run-up to Trump’s win.