We are seeing daily ranges in major FX pairs move lower as the dollar continues in what can best be described as a corrective phase. The 10 day (simple) average range of EURUSD has moved to near the 6-month average of 1.1 cents (or 110 pips).
It peaked over 2 cents in the wake of last month’s Fed announcement. USDJPY is much below the similar 6 months average of the 10 day range. This is largely a reflection of the change in FX drivers we’ve seen, with the many easings of policy that were being seen globally earlier in the year fading, together with expectations of higher rates from the Fed in the first half of 2015.
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