An implied paradox
Despite low volatility, foreign exchange options trading volumes have been on the rise. Risk puts 11 leading firms' activity under the microscope. By Arielle Weliky
The US dollar/euro spot rate appears to be emerging from several months of range-bound activity. As Risk was going to press, the currency pair hit a new year-to-date high of nearly $1.26. Some analysts claim we are now entering an era of the dollar's prolonged rally against the euro following its 30% depreciation during the past three years, as well as increased volatility in the major currency pairs.
That's a significant change from the low volatility of the past 12 months. But despite the
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