22 Feb 2015
Four lower-intensity dramas to monitor until FOMC - JPMorgan
FXStreet (Bali) - There are four lower-intensity dramas to monitor until FOMC, notes the Research Team at JP Morgan Securities.
Key Quotes
"Compared to a dramatic January that delivered weekly vol shocks – Greek snap elections, EUR/CHF float, ECB open-ended QE, oil crash – February is looking somewhat wimpish, with the dollar index consolidating, FX volatility declining and bid-offer spreads normalising."
"Until the March FOMC meeting delivers more comprehensive guidance, currency markets will probably look listless on aggregate measures like the trade-weighted USD. In the interim, four lower-intensity dramas deserve monitoring."
"These are the next $10 move in oil; policy-induced weakness in the CNY; balance sheet risks around DKK, JPY and CZK; and Greece’s EMU membership. Having neutralised USD exposure last month, we remain focused on the crosses."
Key Quotes
"Compared to a dramatic January that delivered weekly vol shocks – Greek snap elections, EUR/CHF float, ECB open-ended QE, oil crash – February is looking somewhat wimpish, with the dollar index consolidating, FX volatility declining and bid-offer spreads normalising."
"Until the March FOMC meeting delivers more comprehensive guidance, currency markets will probably look listless on aggregate measures like the trade-weighted USD. In the interim, four lower-intensity dramas deserve monitoring."
"These are the next $10 move in oil; policy-induced weakness in the CNY; balance sheet risks around DKK, JPY and CZK; and Greece’s EMU membership. Having neutralised USD exposure last month, we remain focused on the crosses."