Bloomberg.com writers Emma Charlton and Paul Dobson have put together a great piece about the trend for “real” money managers (i.e. zero or low-leverage institutional money) to seek higher returns by trading in the frontier currencies. The challenge these markets pose for leveraged trading is the tendency for fundamental changes in economic policy or political instability to override any sort of technical analysis that is effective in currencies with a broader appeal. Interesting that the article puts FX daily volumes at $5 Trillion in September per the Int’l Bank for Settlements. Link to article here.
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