What will this year bring for currency traders?
Currency markets were volatile in 2022. The strong U.S. dollar has put downwards pressure on global liquidity, hurting many developing economies' currencies. FX traders are looking ahead and asking whether the same drivers that moved markets in 2022 remain as powerful. The research below looks to offer some answers.
Over $60 trillion in off-the-books currency swaps could pose a massive risk to the financial system, according to a recent study conducted by the Bank of International Settlements.
Focusing on the Brazilian central bank, this study looks at whether interventions through FX swaps have been successful in stabilising the currency in volatile times.
For compliance reasons, this paper is only accessible in the United States and Canada
The chaos of 2022 will likely linger over the currency markets this year as well, as the forces supporting the U.S. dollar fade, argues Insight Investment.
The U.S. dollar is expected to lose some ground in the year ahead. Meanwhile, the Euro and the Japanese Yen are forecast to pick up the baton.
This paper demonstrates that currency excess returns can be rationalised as compensation for exposure to current account uncertainty.
Central bank foreign exchange reserves are high-profile, state-owned investments. However, these financial instruments can be weaponised in a geopolitically fractured world.
This study focuses on the importance of market timing in FX markets. It shows that it can be costly to impose leverage and risk limits in the process of portfolio construction.
Bringing together views on the direction of global currencies, this report offers investors insights into how some of the key FX markets may perform in 2023.
HOW TO MAKE THE MOST OUT OF SAVVY INVESTOR
All the best industry research at your fingertips. Savvy Investor is a world-leading, FREE content platform for institutional investors and service providers. Watch our video to find out more about what we do and what our website offers!