Currencies Get Boring With Political Risk in Decline - Possible support for the riskier currencies

16.05.2017 / 20:00

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Traders are forecasting smaller currency swings across the globe after the French elections eased
political risk. JPMorgan’s indexes of three-month implied volatility for emerging markets and
G-7 currencies have both hit a level not seen in 30 and 31 months, respectively. The perception that
central banks are averse to disrupting currency markets with surprise policy shifts is also contributing
to the calm, said Mike Moran, head of economic research for the Americas at Standard Chartered Plc.
"Some major political risks have moved into our rear-view mirror, taking implied volatility
with it," Moran said.

If this situation persists, it is possible that the riskier currencies will benefit as they offer a positive swap.

Source: Bloomberg Pro Terminal

Senan Fuchedzhiev - Trader

Varchev Traders

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Currencies Get Boring With Political Risk in Decline - Possible support for the riskier currencies

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