⚠️💱FX Implied Volatility At Lowest Since February 2022: Cable FX Macro

• A measure of global FX volatility has extended its downtrend to reach the lowest level since February 2022. The J.P. Morgan FX Volatility Index reads at 7.59% vs 11.39% a year ago

• Economic uncertainty following the most aggressive tightening cycle in decades, yields rising to the highest in more than 15 years, and geopolitical tensions in various regions of the world have failed to push implied volatility higher

• This is good news for the people who love good news. The stubborn decline in volatility benchmarks may support another leg higher in carry strategies. A measure of the carry strategy in G10FX constructed by Bloomberg is tracking a gain of 5.11% this year, up from a prior rise of 1.52% in 2022