1057 days ago • Posted by Jasper Lawler
Forex market volatility could be about to rise as central banks reverse stimulus
After more than a year of slumber, investors are preparing for currency volatility to come roaring back to life.
From Nomura International Plc to Rabobank, banks are recommending cheap protection against foreign-exchange price swings, which have been muffled so far by a barrage of liquidity and record-low interest rates.
The premise is that as growth picks up and central banks start telegraphing an end to all the stimulus unleashed during the pandemic, traders caught off guard may have to recalibrate their positions, setting the stage for sudden jolts.
Source: Bloomberg
