War and pieces

MARKET VOICE

Both political and economic challenges are facing the FX markets. Teis Knuthsen, chief strategist at SEB Merchant Banking in Stockholm, outlines the issues for the coming weeks

In today’s unsettled political climate, the composition of an optimal currency portfolio is reducible to a bet on an uncertain macro-economic development. At the same time it has to be robust towards increased political and military tensions in the Middle East.

High on the list is a possible war between the US and Iraq. We

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