Steep increase in FX market volatility

In the last weeks, we have witnessed large swings in the FX markets. Until mid March the US dollar showed a clear direction, appreciating slowly but steadily against the euro (“safe-haven demand”). However, from that moment onwards we have not seen any direction in the US dollar anymore, just extremely strong volatility.

In contrast to the US dollar, we saw GBP depreciate substantially versus the euro as of mid March while recovering some of the lost ground in the last few weeks.  

The more than doubled daily volatility (1M rolling) of these currencies may significantly impact your business and financial performance. Feel free to contact Orchard Finance to further discuss your company's FX policy and hedge strategy.