The lack of volatility in FX markets right now is the scourge of traders and there are few signs anything's going to change soon. Saxo Bank's Head of Forex Strategy, John Hardy, talks of "extreme complacency" in the markets. He explains that with a lack of interest rate differentials and strong risk appetite, fx volatility will remain low.
Citigroup's Currency Strategist, Stephen Englander, agrees. He says central banks are trying to convince the markets there'll be no sudden change in policies. However, it's clear to him that monetary tightening in the States and Japan will happen far sooner than many are expecting.