RBC BlueBay Asset Management fixed-income CIO Mark Dowding said in a report that
currency markets are trading with persistently low volatility and FX has largely
dropped off the agenda at macro roundtables and industry events. He said a fall
in energy prices would likely help the euro recover recent
post‑US‑midterm-election losses. The firm has closed its USD long positions and
increased exposure to the Mexican peso (MXN). More broadly, Dowding said some
emerging‑market currencies remain attractive, with carry relative to volatility
offering an appealing risk‑return profile.
