Analysis-Currency markets are in a deep freeze. Rate cuts and Trump could thaw them

Traders and investors are looking to global interest rate cuts and a closely-fought U.S. election to drag the world's currency markets from their deepest lull in almost four years. Measures of historical and expected volatility – how much prices move over a set time period – have sunk in recent months with the world's biggest central banks stuck in a holding pattern, depriving FX traders of the divergent moves between regional bond yields on which they thrive. Deutsche Bank's closely-followed implied currency volatility gauge is around its lowest in two years, and not far off pre-pandemic levels.