Volatility in the foreign-exchange market will stay near quarter-century lows this summer before a potentiallate-year “shock,” according to Deutsche Bank AG's Alan Ruskin.
“The market is extremely complacent, and we will get some sortof shock, probably in quarter four,” Ruskin, global head ofDeutsche Bank's Group of 10 foreign exchange, said in an interviewon Bloomberg Radio's “Surveillance” with Tom Keene and MichaelMcKee. “We'll see the kind of employment numbers, particularly thedecline in the employment rate well below 6 percent, that are goingto trigger a reconfiguration in terms of rate expectations.”
Implied volatility and realized volatility are at 25-year lows,Ruskin said, as investors gauge the Federal Reserve's pace ofraising borrowing costs from the all-time low they have been atsince 2008.
Continue Reading for Free
Register and gain access to:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world cas studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
