27.04.2012 - Currencies becalmed but some see trouble ahead
Some of the biggest players in foreign exchange sense trouble ahead for the euro and believe a major shakeout is coming, even though forward-looking FX derivatives point to yet more lethargy. Judging from options prices, which measure how much volatility traders are predicting, the euro in broad terms is expected to move just 1.8% either side of where it is currently trading, at just over $1.32. That's about a third less than the market anticipated at the start of the year, and it also mirrors a broader market trend: the so-called implied volatility priced into a whole host of major currencies is at its lowest level in years...............................................Full Article: Source
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