Analysis: Age of crisis leaves world’s big currencies out of sync – Reuters

Analysis: Age of crisis leaves world’s big currencies out of sync – Reuters

LONDON, June 28 (Reuters) - Big global currencies are rarely on different paths. Yet Japan's yen and China's yuan are slumping against the dollar while in Europe the euro is outperforming and sterling is on a tear.

With economic and monetary policy outlooks varying, currency moves are increasingly out of sync with each other. This is making the $7.5 trillion-a-day global FX market - operating in the aftermath of COVID-19 and the face of war in Ukraine and an energy crisis - more volatile and more unpredictable.

"It used to be the case that if you got the direction of euro/dollar right, you had a good chance of getting everything else right, but now it's a bit harder," said Nomura's G10 FX strategist Jordan Rochester.