Volatility surge expected

FRONT PAGE NEWS

LONDON -- Forex market participants are preparing for a surge in volatility in the second quarter, after enduring three months of one of the dullest periods in FX in living memory.

Dealers and analysts said they expect volatility to return over the coming months as a result of the return of US firms hedging in the forex markets, yen volatility spilling into euro/dollar, potential interest rate hikes and more mergers and acquisitions activity.

"Q2 will be a lot busier," said Eric Nickerson, h