9 Jun 2015
Trendiness picking up in G10 FX - Deutsche Bank
FXStreet (Bali) - Robin Winkler and Oliver Harvey, Strategists at Deutsche Bank, highlight renewed trending patterns in the G10 FX universe, with trendiness increasing sharply over the past two weeks.
Key Quotes
"Trendiness in the G10 FX universe has increased sharply over the past two weeks, recovering from the low levels observed in May."
"Dominated by the broad dollar theme, trendiness has come hand in hand with rising uniformity."
"However, realized volatility remains at high levels across most G10 currencies and poses risks to investors seeking to benefit from trendiness."
"Medium-term macro drivers have become more important in the past three months. Most notably, continental European economies with comfortable current account surpluses have outperformed Anglophone deficit countries."
"Among the latter, high-yielding AUD and NZD have depreciated after years of overshooting, whereas CHF has outperformed despite offering the lowest interest rates in G10. UIP has kicked in."
Key Quotes
"Trendiness in the G10 FX universe has increased sharply over the past two weeks, recovering from the low levels observed in May."
"Dominated by the broad dollar theme, trendiness has come hand in hand with rising uniformity."
"However, realized volatility remains at high levels across most G10 currencies and poses risks to investors seeking to benefit from trendiness."
"Medium-term macro drivers have become more important in the past three months. Most notably, continental European economies with comfortable current account surpluses have outperformed Anglophone deficit countries."
"Among the latter, high-yielding AUD and NZD have depreciated after years of overshooting, whereas CHF has outperformed despite offering the lowest interest rates in G10. UIP has kicked in."