U.S. Banks Expect Lower Volatility For First Quarter, Modest FX Earnings

BANKS

First quarter foreign exchange trading results from the major U.S. banks are due in the next couple of weeks. Most dealers forecast earnings will be lower than the extraordinary gains of the last two quarters which benefitted from volatility due to the European Monetary System's troubled Exchange Rate Mechanism (ERM). Most of those surveyed say that although volatility was down from 1992, it remained moderately high in the first quarter of 1993.

"Activity clearly slowed in the first quarter r