CME: Euro FX responds to Brexit, U.S. Inflation

CME: Euro FX responds to Brexit, U.S. Inflation

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There are many factors that can influence FX exchange rates, including event risk and fundamental economic data. To manage such risk, traders have often turned to futures and options. Recent events around the world have caused dramatic moves in exchange rates, particularly for currencies impacted by the chaos of Brexit. Additionally, uneven U.S. economic data, along with the Fed pausing further rate hikes, have created  new momentum for CME Group’s U.S. Dollar-based foreign exchange contracts. The Euro FX futures, in particular, have seen increased demand as the uncertainty of a Brexit outcome and concerns over a decelerating U.S. economy, among others, create new risks and opportunities for traders.

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