Behind the recent increase in volatility: questioning the omnipotence of central bankers

Behind the recent increase in volatility:  questioning the omnipotence of central bankers

·         Volatility in all markets, including currencies, has picked up recently. Behind this move is:

·         Uncertainty about whether the ECB will be able to do QE, and even if they do, what effect it will have

·         Uncertainty about the timing or pace of Fed tightening; and most importantly,

·         Uncertainty about whether central bankers have any more tools to help boost the global economy if we fall back into recession or deflation

·         Do you think the the dollar rally is derailed, or only delayed ?

·         Do you believe that the commodity currencies are liable to be the most vulnerable under these circumstances? Selling CAD/JPY may be a good way to capitalize on these trends ?