Investing in Currencies

Investing in Currencies

Currency markets are about to learn a lesson in defying economic gravity

Stay informed with free updatesSimply sign up to the Foreign exchange myFT Digest -- delivered directly to your inbox.This spring, just after Russia’s invasion of Ukraine, Washington’s Institute of International Finance made a bold and idiosyncratic prediction: the euro was about to weaken dramatically from its $1.11 level because the region was heading for a current account deficit.Not many investors agreed. Data from the Commodity Futures Trading Commission suggests that there was a net “long” speculative position in the markets then — in other words, investors were betting the currency...
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