With geopolitical risk and FX volumes on the rise, flow explores how combining the right technology with trusted market expertise is essential for corporate treasurers
FX volumes are set to increase in 2019, thanks in large part to increasing geopolitical tension in global markets. In Europe, Brexit continues to drive uncertainty, while US–China trade tensions are adding a level of unpredictability to their home markets and beyond. This year will also see several emerging markets holding key elections that will add to global market uncertainty, with Argentina, India, Indonesia and South Africa among the countries heading to the polls.
Looking at the micro level, the escalation of tensions between India and Pakistan in February 2019 provides a good example of how unplanned events can have an immediate impact on FX rates, with the USD/PKR moving half a percentage point in a day as a result.1
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