FX turnover data, published by the central banks of six main FX jurisdictions, provides useful information on the size and the structure of FX activity. The size of the FX market increased by 11% compared to the previous year. NDFs (non-deliverable forwards) appeared to gain in popularity amongst FX market participants. The US dollar continues …read more
The uncertainty associated with the outcome of the referendum on Britain’s EU membership is already affecting financial markets and the wider economy. By examining the pricing of derivatives, we can identify the price the market is putting on this uncertainty, and what movements in currency are expected between now and the referendum itself.