FX To Follow Equity Trail
Many investors have lamented in recent weeks that the easy gains in FX have already been made. Although USDJPY has now broken through 100, the policy and (Japanese) flow impetus to take the pair to the next level has not materialised. Many investors stepped back as May arrived, but for those who had to keep risk on, sticking to equities seemed to be the trade with the best value and US investors have been particularly active. The amounts involved are large, but the drivers less benign. Finally, might FX expect some action on the back of hedging flow?
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