Exchange rate volatility has been at such a low level for so long that traders are beginning to see it as a new normal rather than a temporary phenomenon. At the annual industry conference held in Amsterdam this week, the low volatility environment was one of the main topics for the second year in a row. Investors described it as being difficult to cause the exchange rate to continue to fluctuate greatly even if there are drastic changes in the current market, even if there are drastic changes in bond, oil prices, and the geopolitical situation. “We are impressed that exchange rate volatility is experiencing a long-term trend decline,” said Harish Neelakandan, co-chief investment officer of the systemic trend tracking fund AlphaEngine Global Investment Solutions. “This is the reality we face and we have to learn to adapt.”

Exchange rate volatility has been at such a low level for so long that traders are beginning to see it as a new normal rather than a temporary phenomenon. At the annual industry conference held in Amsterdam this week, the low volatility environment was one of the main topics for the second year in a row. Investors described it as being difficult to cause the exchange rate to continue to fluctuate greatly even if there are drastic changes in the current market, even if there are drastic changes in bond, oil prices, and the geopolitical situation. “We are impressed that exchange rate volatility is experiencing a long-term trend decline,” said Harish Neelakandan, co-chief investment officer of the systemic trend tracking fund AlphaEngine Global Investment Solutions. “This is the reality we face and we have to learn to adapt.”