ETF Securities FX Research – Volatility turnaround to drive asset class returns
NOK and GBP to outperform
Summary
- Investor uncertainty remains elevated. However, investors differ with consumers, with consumer sentiment on an uptrend, lifted by jobs and low energy prices.
- Currency volatility expected to moderate as investors convinced by underlying strength, helping support a ‘risk–on’ environment.
- The British Pound has historically had a strong inverse correlation with volatility.
- Currencies battered by volatility to turnaround, with Norwegian Krone and British Pound leading the way higher.
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