When Will the New Year Forex Chop End?

After largely ignoring the prospects of rising interest rates and reduced central bank stimulus (e.g. Fed ending QE and eventually reducing its balance sheet), markets seemed to have awakened to the reality of the monetary punch bowl being drained.This has resulted in a double whammy as stocks slide and bonds tumble (yields rise) as the reality sets in. The forex market, by comparison, has been mixed and choppy, with limited follow through. This can be seen by the following table where only USDJPY was trading more than 1% from its 2021 close: