Markets braced for tough 2012 in FX

Uphill runner

Senior participants in the foreign exchange market began the year in cautious mode last week, with widespread expectations of a challenging year ahead. In a survey of traders, technologists, strategists and lobbyists, the resolution of the eurozone crisis emerged universally as one of the biggest challenges for the FX market in 2012.

"We expect to have very volatile markets, with uncertainty in FX still at a historical high. The elevated volatility of volatility has made the FX market tricky –

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