Several prominent investment banks have recently forecast a big rise in currency volatility. This matters for investors and companies with foreign operations, because large currency swings can have a significant effect on profitability. This is even more pertinent this year, given that many companies are dealing with pent-up consumer demand and overflowing order books. Before proceeding into the arguments, it is worth noting that volatility – and FX volatility in particular – is not statistically forecastable. Anyone who says that they have a model that can accurately predict volatility is not credible. One of the main drivers of cross-asset volatility…

Want to continue reading?

Introductory offer: Sign up today and pay €200 for an annual membership, a saving of €100.

Subscribe

Cancel anytime.

Are you already a member? .