Natasha Rega-Jones

| The start of Kevin Warsh’s reign as Federal Reserve chair has helped banish investor apathy towards the US dollar, foreign exchange traders say, as growing rate hike expectations have provided investors with a solid greenback narrative to latch onto. Once viewed as overly sympathetic to US president Donald Trump’s demands for lower interest rates, Warsh has struck a balanced tone since assuming his role in May and emphasised the importance of Fed independence – and its 2% inflation target.

| Investors are pulling back from dispersion, a complex breed of derivatives bet that has minted huge profits this year, as traders grow skittish amid a historic slump in US stock market correlation. A dramatic reshuffling in US equity markets this year has delivered a major windfall for dispersion traders, who use derivatives to profit from stocks heading in different directions.