Flash: Fasten your seat-belt for some sharp USD volatility - SocGen

FXstreet.com (Barcelona) - According Sebastien Galy, FX Strategist at Societe Generale, as the market discounts more fears regarding Fed tapering and a Chinese hard landing, "the risk is for USD FX volatility to move once again sharply higher in the next weeks as these risks return."

Galy adds: "The risks associated with economic releases will be increasing from next week on with Q2 GDP, FOMC, ISMs, NFP. As we expect the US economy to strengthen, the fears regarding tapering are most likely set to increase. This translates eventually into a bid for the USD and its vols."