Trend followers power through in May

The bank’s naive simulation of currency trading styles recorded a 9.8% return for the strategy last month, as risk aversion dominated the landscape throughout the European fiscal crisis. All currencies lost ground to the dollar except the yen, which gained – the Australian dollar, Norwegian krone and euro suffered the heaviest losses.

The value strategy generated returns of 4.9%, with long positions maintained in yen and Swedish krona since the previous months. All the other currencies were short