Tue, Sep 30, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Why has it been such a difficult environment for currency traders ?

Friday, October 11, 2013

amb
Benedicte Gravrand, Opalesque Geneva:

Thomas Suter is CEO of Quaesta Capital AG, which manages in excess of $2.5bn in investment products and currency risk management mandates. He has more than 20 years of experience in financial markets and has been with Quaesta since its 2005 start. He recently spoke to Sona Blessing on Opalesque Radio about investing in currency strategies in the current environment.

The FX (foreign exchange) market, in which currencies are traded, is the largest financial market in the world, with currently around $5tln being traded daily.

Over the last five years, following the financial crisis, foreign exchange as an asset class has not done so well, Suter says. 2008 was a great year for FX and there was much enthusiasm around this asset class due to is liquidity, transparency and diversification (due to low correlation) benefits. Several banks, specifically Citibank and Morgan Stanley, started promoting new platforms supporting FX managers.

But the 2008 momentum faded away. There has not been much action among the major currency pairs, and low volatility. "Combine that with booming equity and fixed income markets and this has not been helpful for a topping of currencies as an investment opportunity," Suter notes.

According to the Bank for International Settlements (BIS), currency trading kept increasing in the first year of the financial c......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Socially responsible investments grow in demand, but performance questions persist[more]

    Komfie Manalo, Opalesque Asia: A study by financial services firm TIAA-CREF showed that interest in socially responsible investing (SRI) is increasing rapidly, but investors are still asking if investing in an SRI strategy

  2. Outlook - Julian Robertson: There are two bubbles that can bite us[more]

    From Businessinsider.com: Legendary hedge fund manager Julian Robertson gave a warning about two bubbles that could "bite us" at Bloomberg Market's Most Influential Summit. "I agree with the fact that the economy is definitely getting better. I think the cause of that is two bubbles that will

  3. Manager Profile: Leon Cooperman: The stock market is 'fairly valued,' but the bond market is 'overvalued'[more]

    From Businessinsider.com: Leon Cooperman of Omega Advisors and Howard Marks of Oaktree just finished a panel at Bloomberg's Most Influential Summit. Bloomberg TV's Stephanie Ruhle was the moderator. The two titans, who have known each other for 40 years, spoke about the market and the state of

  4. North America - Some newly registered U.S. hedge fund advisers are ‘cherrypicking’[more]

    From Reuters.com: Some newly registered U.S. hedge fund advisers are "cherry-picking" investments to showcase their performance and improperly changing how they value securities, an agency official said on Monday. Andrew Bowden, head of the SEC's Office of Compliance, Inspections and Examinati

  5. Regulatory - Ireland launches structure for passporting loan origination funds within EU[more]

    From Asiaasset.com: The Irish Funds Industry Association (IFIA) has introduced new loan origination capabilities that will offer Asian managers and investors a new structure under the European Union’s (EU’s) Alternative Investment Fund Managers Directive (AIFMD). The new structure will allow the mar