With geopolitical news making headlines amid uncertainty in global markets, the potential for heightened volatility is increasing. This is a must-watch trading theme that requires close attention due to the impact of volatility on many currencies. In recent dats we have seen 1-2% swings in certain pairs and more expected movement to follow. When we see uncertainty in the markets when generally see volatility, big swings back and forth and the potential for some large collapses. Over the past few weeks we have seen some clients book in forward contracts for AUD/USD above 0.70c to protect them in the short-medium term moving forward. We are also seeing significant moves and news around the GBP & EUR, the NZD has also seen movement this week off the back of interest rate increases, however that was quickly drowned out due to the on-going issue between Russia & Ukraine. It's something to be very mindful of as a business owner, financial advisor or accountant that has clients with exposure to the currency markets. I'm available to assist if required and feel free to reach out to me if I can help.
