For FX traders, this crisis is unique – Reuters

For those trading major FX markets, this crisis is unique. There have been some big swings but no clear move in one direction across major currencies and no sustained demand for perceived safe assets.

Sterling collapsed and then bounced back, cable recovering half its losses.

EUR/USD has swung wildly but has ended up in the middle of this year’s extremes.

USD/JPY slumped, soared then returned to levels trading before the turmoil. So much changed and then again nothing has changed at all.

This is very different from what happened in the global financial crisis, which resulted in material changes for major currencies. In 2008, the USD index rose 26%. It’s little changed this year.

Despite swings, EUR/USD and USD/JPY still reflect the pre-crisis trends where rates pressured funding currencies and negative-yielding currencies suffered.

At that point, bad news fueled risk-on moves, the result of stimulus and expectations for stimulus. It seems that bad news is once more supporting positive currency trends.