FX traders pull back to vanilla strategies for emerging markets

Spreads tighten on many currency pairs but liquidity still patchy


Trading emerging markets currencies has fallen out of favour since the outbreak of Covid-19, with runaway volatility and blowouts in spreads for many currency pairs damping volumes in spot and forwards.

Although spreads are tracing back from their March highs, there are still reasons for caution, traders say.

“I don’t feel like we have necessarily hit the bottom because fundamentals now are shrouded with uncertainty. We’re probably going to see the impact of what’s going on in three months or

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: