| Videos | Channels | Search |
Hardy: The amazing complacency in FX markets
The complacency in forex markets is "just amazing", according to Saxo Bank's Head of FX Strategy, John Hardy. He's referring to the lack of response to the Ukraine crisis in major currency pairs. This was described as the biggest geo-political risk in years, yet euro dollar, for instance, only moved around seventy pips on Monday.
John says central banks are behind this mood. He says they're so willing to jump in to support markets "every time" there's an uptick in fear, traders know they can go long and bid up risk because the banks will be there as a backstop. He says the big concern is that when you have too much complacency for too long, it tends to add on to leverage and an under appreciation of what the real risks are.
01:55 minutes
Tags: bank of england, boe, central banks, complacency, currency pairs, dollar, ecb, euro, european central bank, eurusd, fear, fed, federal reserve, fomc, foreign exchange, forex, forex trading, fx, fx strategy, japan, japanese yen, john hardy, leverage, meeting, pips, real, risk, risks, russia, saxo, saxo tv, saxotv, trading, tradingfloor.com, ukraine, us, yen