Return of volatility but no contagion - Saxo Bank

But commodity currencies could prove vulnerable

Saxo expects GBP/USD to trade at around $1.47 within the next three months

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In the very short-term, currency traders need to be cautious and choose their bets carefully during bouts of risk appetite, as the market braces for an uptick in volatility, says John J Hardy, head of FX strategy at Saxo Bank.

Despite the tremors in stock markets, foreign exchange has remained relatively calm and orderly, but the shock swings in equities have opened the door to elevated volatility, as central banks remove the ‘comfort blanket’ of quantitative

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