Increased risk appetite causes spike in relative value FX trades
A ‘risk on, risk off' environment has been the hallmark of foreign exchange markets in recent years as unorthodox monetary policy from many central banks and the ongoing stresses in the eurozone have driven regular changes in investor appetite for risk.
But 2013 appears to have started in a different mode, with risk appetite heightened by the sharp depreciation of the yen over the past month and the unexpected strength of the euro. Traders report that certain relative value trades are gaining in
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