Will the currencies market ever wake up?

This is becoming a pressing question. Broadly, the forex market is in a deep sleep. Among major currencies, sterling is cornered in a Brexit soap opera that could induce it to be charging higher or tumbling through the floor.

Until investors know the outcome for certain, they are reluctant to place bets. Similarly, the euro and the dollar are locked in a tug of war, each bearing challenges around economic growth, central bank monetary policy, and political risk. The yen is likewise in thrall to US monetary policy.

In the interim, it is quiet out there. Indices tracking volatility in major currencies have been trending lower for around a year and a half. As such, it is tough to identify a trigger in the coming week that will rouse foreign-exchange markets from their slumber. It could be a delay in the Brexit date. But even that event seems to be already priced in by traders. The outcome of trade talks between US and China could be another one, notwithstanding it will generate volatility more on the stock markets.