Morgan Stanley is predicting an uptick in FX volatility might be around the corner in a research report.

  • Says the USD is pushing up against technical barriers in a number of currencies & might be ready to break them
  • “There are signs that currencies are set to break out of recent ranges, having the potential to trigger an increase in volatility”

Ian Stannard, head of European FX strategy at Morgan Stanley:

  • “We are already seeing policy evolving and currency pairs breaking out of their ranges …We may not have to wait until after the summer for volatility to rise”
  • “USDJPY is still trading in its narrow and long-established range, but if it does break out, that pair has perhaps the greatest potential to increase volatility”

Maybe he has been watching AUD, NZD, the EUR/USD move below 1.35, and the moves in EUR/GBP?

“We may not have to wait until after the summer for volatility to rise,”

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“We may not have to wait until after the summer for volatility to rise,”Full article: http://www.euromoney.com/Article/3364581/Category/16/ChannelPage/0/Volatility-comeback-reality-or-wishful-thinking.html?copyrightInfo=true
Visit http://www.euromoney.com/reprints for additional distribution rights. For more articles like this, follow us @euromoney on Twitter.