M. Wiebogen Honorary President ACI The Financial Markets Association
M. Wiebogen Honorary President ACI The Financial Markets Association

Foreign Exchange the market which never sleeps

We have seen some interesting developments during the summer break, keeping the momentum and volatility in the markets: Emerging currencies are falling and there have been some concessions on clearing rules. Whilst the industry was waiting for the BIS 2013 Triennial Survey, latest reports show a delay of FTT in Europe, however Italy has introduced a tax on high-speed trading and equity derivatives.

Emerging currencies under review It looks like some Asian and Latin America officials are quiet frustrated about the recent flight from some emerging markets. Sell off in some countries started shifting money back to the western world. Whilst the US and Europe were badly hit by the Global Financial crisis some emerging countries could take good profit from their resilience but also for providing good alternatives for investments in the past. Nevertheless, some of the emerging countries complained about the experimental monetary policy in the western hemisphere which they see as a source of potential financial instability for the entire global system. Now, as the markets identified positive economic developments in the US but also a good stabilisation in Europe with positive outlook, investors have probably verified their risks and strategies again. Taking into consideration inflation and current account deficits of some of the EM countries we may identify that currencies have fallen the most in so called...continued

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