The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Currencies: To buy or to sell? That is the question

Among the many clichés that came to mind when I started writing this column I had: ‘Another week, another dollar’; and the colloquial ‘USD Brics it’. But what I really mean is that short-termism still reigns in FX.

For the most part, currencies remain range bound. Normally, this would result in implied volatilities being sold off sharply, but talking to a friend in the option market it seems that there are other intra-day uncertainties in the news flow to keep implied vols relatively firm. Questions players have had to answer this week include: have rates bottomed in countries such as the US and UK; would there be an imminent unwinding of the great quantitative easing experiment; is inflation a bigger threat than deflation; would the Bric summit come out with a statement that resulted in a sell off in USD; would the SNB talk the CHF lower; and what is the true state of the balance sheets of the euro zone’s banks?

In the meantime, many bank traders have become extremely risk averse – more precisely, they have been told not to lose money.

It’s starting to look like it’s going to be a long summer.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree