For FX vol, think globally, but act locally

The US raising the stakes in its trade war with China promised unpredictability, instability and volatility in international trade, the global economy and financial markets in 2019. Yet, for the most part, the foreign exchange market fell in line with other asset classes to exhibit ever-lower levels of volatility. 

The most common explanations for this low-volatility blanket are to be found in macroeconomics and monetary policy.

Growth levels in the global economy have been benign, while China