What makes a currency volatile?

Sometimes a currency pair trends, with an inexorable unidirectional strength behind the price movement that encourages all traders to jump aboard for the ride. But sometimes it waffles, rising strongly then turning without warning. There’s no sense of direction, no certainty, and little opportunity to trade beyond scalping. A good example is the fifteen-minute chart of the U.S. dollar versus the Swiss franc, below:
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The Stock Market Volatility Index

The Chicago Board Options Exchange Volatility Index, commonly called the VIX or the “fear index,” measures stock market volatility over the next thirty days. It’s directly investable as contracts, futures, and an exchange-traded fund, but for many retail investors, the main purpose for the VIX is an indicator for what’s ahead in the stock market.
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