(Bloomberg) -- Greater fluctuations in the prices of
stocks, bonds and currencies probably will erode profits from one
of the most popular investment strategies in the foreign exchange
market, according to Goldman Sachs Group Inc.
A Goldman index that tracks three-month implied volatility
on options on eight major currency pairs is at 6.03 percent,
after reaching 5.78 percent last week. The record low, set in
November, was 5.54 percent. Implied volatility, which traders
quote as part of setting options prices, indicates expectations
for future price swings.
Read more at Bloomberg Emerging Markets News
stocks, bonds and currencies probably will erode profits from one
of the most popular investment strategies in the foreign exchange
market, according to Goldman Sachs Group Inc.
A Goldman index that tracks three-month implied volatility
on options on eight major currency pairs is at 6.03 percent,
after reaching 5.78 percent last week. The record low, set in
November, was 5.54 percent. Implied volatility, which traders
quote as part of setting options prices, indicates expectations
for future price swings.
Read more at Bloomberg Emerging Markets News
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