Foreword : Volatility returns to the FX markets

Manfred Wiebogen
President ACI The Financial Markets AssociationManfred Wiebogen looks at why the current increase of volatility in
the FX market is the result of uncertain and obscure economical
developments.
Friday, March 7th 2008, just when writing these lines the Euro
hit a record high against the Dollar at 1,5459 after the release
of the U.S. non-farm payrolls. The effective rate surprised the
market consensus and turned out to be a drop for the second
straight month. There is a lot of concern about how the huge
downturn in the U.S. economy is going to affect the rest of the
world. Politics and economic outlook nurture the financial
markets with uncertainty which results in continuing high
volatility at the end.
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