Global FX Volatility Outlook 2026

FX vol remains subdued into 2026 on resilient US growth and low central bank activity, but starting levels limit further downside. Policy events in 1Q26 could test this regime, making cheap forward vols over 1Q attractive as portfolio hedges. Beyond that, FXO trade recommendations focus on European growth, Antipodean revival, debasement, carry via options, EUR skew harvesting, selling x-corrs, and leveraging the macro backdrop for efficiency in x-asset directionals.

Speakers

Arindam Sandilya, Global FX Strategy
Ladislav Jankovic, Global FX Strategy
Juan Duran-Vara, Global FX Strategy
Sanjana Shinde, Global FX Strategy

This podcast was recorded on 28 November 2025.

This communication is provided for information purposes only. Institutional clients can view the related report at https://www.jpmm.com/research/content/GPS-5125942-0 for more information; please visit www.jpmm.com/research/disclosures for important disclosures.

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