Currency Volatility Is Cheap As ECB QE Effectiveness Questioned

Currency volatility could result as central banks are beginning to lose their ability to produce the desired results, a Bank of America Merrill Lynch report notes, and this is likely to have an impact on the euro currency. This is occurring as the relationship between the euro and the Japanese currency – two regions engaging in aggressive quantitative easing efforts – is starting to break down. In this environment, volatility may be undervalued, Christopher Xiao, the bank’s currency strategist, wrote in a March 23 research report. With the ECB and BoJ reaching the end of their rope in terms of…