Another week, same old dollar
It would be wrong to say that there is nothing going on in FX, because there is far more to the market than what is taking place in the majors. But looking from the outside, as I do, at EUR/USD, cable and USD/JPY, I can only feel a strong sense of déjà-vu.
Reading through some of the excellent research that kindly gets sent to me, it’s evident there’s plenty going on elsewhere. As well as some surprising changes in monetary policy in some countries, there are also significant political and judicial events to consider – and by that I don’t mean the fact that a British judge found in favour of Max Mosley’s sexual constitution – but a landmark ruling in Turkey about its secular constitution. As the central bank data published this week show (see FX volumes surge, but problems lurk), although volume remains concentrated in the majors, activity has picked up in many other currencies.
Looking ahead, I have lined up three guests, from Barclays, CME and CLS, to write this column in August. They have complete autonomy, although they have been told that if they want to run an advert, they need to contact the advertising sales department at Euromoney and pay for it. I’m sure they will all have some interesting views to put across, which readers will of course be able to comment on.
Elsewhere this week, as most of you will know, the Federal Reserve announced that it would extend its liquidity window and take various other measures to try to ensure that financial markets continue to function.