12 May 2015
Trendiness has bounced back in the G10 FX universe – DB
FXStreet (Barcelona) - Strategists at Deutsche Bank explain that conditions have been improving for FX investors as uniformity continues to decline and trendiness bounces back in the FX space.
Key Quotes
“Uniformity continues to decline, as the broad USD trend no longer dominates. With volatility unchanged, albeit at surprisingly high levels, conditions are generally improving for FX investors.”
“Growth has been the top macro driver in G10, though it primarily explains the recent outperformance of CAD in conjunction with market re-pricing of monetary policy. Looking beyond CAD, carry has come into its own as a market driver, with EUR and CHF weakness (over our 3-month window) as well as AUD strength strongly correlated with short-term rates. Underperforming NZD is now an influential outlier in this relationship.”
Key Quotes
“Uniformity continues to decline, as the broad USD trend no longer dominates. With volatility unchanged, albeit at surprisingly high levels, conditions are generally improving for FX investors.”
“Growth has been the top macro driver in G10, though it primarily explains the recent outperformance of CAD in conjunction with market re-pricing of monetary policy. Looking beyond CAD, carry has come into its own as a market driver, with EUR and CHF weakness (over our 3-month window) as well as AUD strength strongly correlated with short-term rates. Underperforming NZD is now an influential outlier in this relationship.”