Markets brace for US election volatility

Positioning in foreign-exchange derivatives suggests that November’s election – which may be hampered by the ongoing coronavirus pandemic and risks being drawn out – will be accompanied by a spike in volatility.

NEW YORK: It’s crunch time for traders betting on the prospect of market upheavals around the US presidential vote.

With less than three months until polling day, the commonly-traded options and futures contracts that typically match that timeframe are now firmly in play. But currency and interest-rate bets reflect quite a different view to equities, leaving some wondering which signals to trust.