04 Aug 2021

What to look out for in summer FX markets

Demitri Theodosiou

Head of FX and Interest Rates Trading

In the latest instalment of our “Thoughts of an FX Trader” article series, Head of FX and Interest Rates Trading Demitri Theodosiou explores some of the key events to watch out for in the coming weeks.

As we enter August, FX traders and dealers traditionally refer to this period as “summer markets”, a historically quieter, slower period as market players cram onto planes searching for sunnier climates. Of course, last year gave rise to the staycation trend as Covid-19 caused havoc in international travel, and we’re still feeling some ramifications this year – the Theodosiou family will be spending an amount equivalent to a holiday in the Bahamas to stay in a caravan by the sea in the coming weeks.

While some look towards this year’s Jackson Hole Economic Policy Symposium at the end of this month to give some guidance on when the Federal Reserve might start to withdraw stimulus, others will be taking a bit of a breather before the usual September and October market moves. In this spirit, I’ve taken a breather this week from the usual market focus to have a look at our growing online FX offering (shameless plug alert!).

With governments and central banks still pumping out massive amounts of fiscal and monetary stimulus, the risks are for volatility to potentially return with a vengeance once they try to withdraw some.

This year, Investec won a Business Moneyfacts award for Best Business FX Provider, centring around our digital client portal and its functionality. Having been a part of the journey to create this from the start, I was taken aback this week to see how far the offering had come, particularly the FX Hedging Analytics tool that gives a meaningful insight into your current hedging, gaps in coverage, and how things look if the markets move. We’ve also expanded our offering online to cover a broader range of products. Still, here at Investec, we always partner innovative technology with real people so that clients can enjoy the best of both worlds. We love to hear feedback to keep tailoring that service to work for you, so please get in touch.

For those working through August, plenty of data are coming to keep us on our toes, ranging from labour market reports to inflation readings and central bank speakers at Jackson Hole. Economic readings and central bank sentiment will shape how volatile the months ahead will be. With governments and central banks still pumping out massive amounts of fiscal and monetary stimulus, the risks are for volatility to potentially return with a vengeance once they try to withdraw some. For those taking a well-deserved break in what continues to be a trying period, enjoy time with friends and family and rest up, because as we say in markets, you can “come back refreshed, and we go again”.

Get more FX market insights

Stay up to date with our FX insights hub, where our dedicated experts help provide the knowledge to navigate the currency markets.

It all starts with a conversation. To discuss your FX & Risk Management needs, please complete the form

It all starts with a conversation. To discuss your FX & Risk Management needs, please complete the form below and our team will contact you as soon as possible.

Investec Bank plc and its subsidiaries recognise and respect the privacy and data protection rights of individuals with regards to personal data.

We may use your personal data to provide you with services you request from us, or to manage your accounts, make decisions, detect and prevent fraud, fulfil any contractual relationship with you, undertake analysis and assessment, ensure that we comply with legal and regulatory requirements and/or for other purposes where in our legitimate interests. 

For further details as to how Investec uses personal data, please refer to our Data Protection Notice

Sending...

Please complete all required fields before sending.

Thank you

We will be in touch shortly

Sorry there seems to be a technical issue