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Michelsen, Saxo Bank: saw surging volumes in December |
Foreign exchange is a market that has long confused players in other assets. And despite its acceptance as an asset, the way it behaves has remained an enigma to many. For much of 2006, FX has seemingly defied logic. What has been particularly striking is the fact that even though the market seemed mired in narrow ranges, with implied volatilities in the majors posting record lows on a regular basis, volumes have not only held up but even continued to grow.
When the majors did finally break out of narrow ranges towards the end of November, the market reacted spectacularly. There was no...
