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Complacency rises in the FX market, warns JPMorgan, as currency traders price in an environment...

Complacency rises in the FX market, warns JPMorgan, as currency traders price in an environment leaving no margin for policy error. Dollar positioning has dropped from record long to flat, and volatility premiums have vanished. Either the global economy is better than thought and policymakers suddenly more competent, or risk is being mispriced.
Comments (3)
  • Well, it's a pretty sure bet that policymakers haven't suddenly become competent...
    20 Aug 2012, 11:15 AM Reply Like
  • Good point about currency volatility. Seems volatility is complacent in many areas these days. Seems much more likely that risk is being mispriced in multiple market areas.
    20 Aug 2012, 07:05 PM Reply Like
  • Mistakes and miscalculations abound...complacency simply masks their detection....it's like everyone's stoned on Hopium. The patient Bear Investor (vs. Trader) will be rewarded as everyone's psuedo-good fortune evaporates into thin air. Loaded up on TVIX & SPXU here
    20 Aug 2012, 07:38 PM Reply Like
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