Credit Suisse Shorts Euro in Opaque, Low-Volatility World
- Currency volatility has averaged below 2011 and 2008 crises
- Euro seen in range between $1.04 and $1.16 through June 2016
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Credit Suisse Group AG is running a “small position” to profit from a drop in the euro against the dollar as it reduces investments that are vulnerable to sudden shifts in currency levels, said Robert Parker, a senior adviser in the investment, strategy and research group.
Switzerland’s second-largest bank is avoiding major bets in the foreign-exchange market because volatility among major currencies has been low, Parker said in an interview by phone from London. The euro has been trading in a range of $1.08 to $1.17 since the middle of May, after recovering from a 12-year low of $1.0458 reached on March 16. In 2014, the common currency had swung between $1.3993 and $1.2097.