With keynote speeches from two of the most prominent figures in the foreign exchange markets, the 13th Annual Euromoney Forex Forum got off to an exciting start on Wednesday 8 May. Neil Record, Chairman of Record Currency Management opened the event with a speech highlighting the concerns and difficulties QE, the future threat of inflation and what negative real interest rates mean for investors. The solution he suggests: use currencies as an investment vehicle and source of beta.
Neil outlined the benefits of using the carry trade as a source of excess return and demonstrated that currency investments almost always outperform bonds during periods of inflation. Holding a portfolio of emerging market currencies with carry can provide a good inflation hedge and a diversifier from equities, he concluded. John Taylor, Chairman and Founder of FX Concepts, followed Neil with a presentation on the ‘New Age of FX’. With RORO coming to an end, inflation rising, the re-emergence of carry and low levels of volatility finally bottoming out, currency investors have every reason, he argued, to be optimistic about the 12 months ahead. Unlike in 2012, he argued that alpha generating strategies are back for 2013.
This provided the perfect introduction to the day’s opening panel, ‘The Return of Fundamentals’. Both buyside and sellside took to the stage to debate whether or not we were truly seeing the end of RORO and a return to trading off the back of fundamentals. As debate over central bank intervention’s influence over the market went back and forth, it became apparent very early on that yen was to be the buzz word of the day. The influence of the Bank of Japan, the re-emergence of currency wars and the 100 barrier were themes for discussion on and off the stage from start to finish.
In addition to in depth discussions over G3 central bank policy, expert speakers took to the stage to tackle the other big issues of the day including regulation, emerging market currencies, the latest developments in trading platforms and the return of FX as an asset class.
Almost 300 of the industry’s leading figures joined us at the forum on 8 May for a day packed full of stimulating debate and presentations, all of them leaving with plenty of food for thought. Thank you to all our sponsors, speakers and delegates who made this event possible. We look forward to building upon the success of this event next year.