Global currency market seen as the premiere way to trade central banks’ pandemic-era policy divergence


In a world filled with plenty of uncertainties, the almost $7 trillion-a-day currency market is being seen as perhaps the best venue for trading the diverging policy paths of central banks worldwide in the pandemic’s delta era.

Friday’s weaker-than-expected U.S. jobs report for August kept alive expectations of a Federal Reserve announcement to taper bond purchases this year, but raised plenty of questions about the strength of the economy. That doubt put downward pressure on the U.S. dollar at a time when uncertainties about the coronavirus delta variant and its impact on global economic growth remain high.

Currency players– who are, by nature, acutely aware of what’s happening every day, everywhere around the globe — are used to occasional periods of short-term uncertainty, in which they assess which regions will hold up better than others. What’s unique this time around is that the lack of clarity comes as central…

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