According to Jin10, Morgan Stanley analysts said low volatility in the G10 foreign exchange market is expected to continue through late August and early September. They added that data from now until the Federal Reserve meeting in September should align with expectations that the Fed will keep rates unchanged this year, which would prompt the market to gradually price out rate-hike expectations. They also said FX volatility is expected to face downward pressure because there is little long-term relationship between Fed policy pricing and FX volatility, and that Middle East risks may continue to be absorbed by the market before the U.S. midterm elections, while August has historically been a relatively calm period for markets.