Rates volatility buoys hopes for currency forwards desks
Currency forwards desks have had a quiet time of it since central banks cut interest rates to historic lows, but with rates volatility expected to increase – and the more distant prospect of central bank hikes – trading activity could be reinvigorated. Bankers expect a whole range of buy-side participants to up their activity in the forwards market.
"In a rising-yield environment, we would expect to see an increase in volume from pretty much every customer sector we have – retail, large- and
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