Deutsche Bank strategists say the range-bound trading in the
currency markets could be ending.
The currency markets have seen extremely low volatility
lately despite a spate of political events and economic reports - but the
strategists at Deutsche Bank say we are about to live in interesting times once
again.
"Looking back over the last 12 years, there have only
been five episodes where a lack of trend across all 42 G-10 crosses has
persisted for more than the current period," they wrote in a note to
clients. And just in case you've been lulled into thinking that this time is
different, the strategists point out that "central banks are coming back
into play" and indicating clear direction shifts, like the Bank of
Canada's increased hawkishness and the potential for easing from the Reserve
Bank of Australia. Also, emerging market currencies seem to follow a pattern,
they say: "May and June both tend to provide above-average returns for
trend-following strategies."
Read more here: http://www.cnbc.com/id/47146265
No comments:
Post a Comment