Comments on: Quick overview of Asian FX market

By: majimaji

majimaji — Thu, 22 Nov 2012 06:17:45 +0000

interesting read milan, thanks for sharing

By: Milan

Milan — Thu, 22 Nov 2012 05:58:23 +0000

An interesting note from Reuters regarding low volatility in the FX market:
“Apart from JPY, traders and structurers are still grappling with a world of superlow vols. Here’s a rundown of what’s going on: 1) Very low realised vols 2) Willing sellers of vol on any rise on top of existing vol selling from structured products 3) Earlier sovereign selling of EUR/USD vols via dual currency deposits containing ranges and reducing vol elsewhere 4) Not much leverage in FX trading, perhaps due to Dodd-Frank/greater regulation and global investment banks shrinking, hence the weak volumes 5) Interventionist central banks diversifying, such as the SNB buying AUD, CAD, NOK, also serve to damp volatility because there is a big, eager buyer on any drop and 6) The QE/low rate regime has reduced interest rate vol and also impacted FX (rate spreads not what they used to be).”

By: Sean Lee

Sean Lee — Thu, 22 Nov 2012 05:28:55 +0000

That’s right Maji, very quiet from them really for last 6 months. Gold reserve data overnight showed Brazil and Turkey are still big buyers. I usually hear when there are Sovereign orders in Gold but have heard nothing in last few weeks.

By: majimaji

majimaji — Thu, 22 Nov 2012 05:18:17 +0000

any gold orders or china trades you heard of lately, its been pretty quiet from china