CB's policy shifts to produce wilder FX volatility in 2014 - TDS

FXstreet.com (Barcelona) - EUR/USD is headed for another year of little net change, very much in line with its long-term average and right in the middle of the trading range since 2010, notes
Shaun Osborne, Chief FX Strategist at TDS.

However, as Osborne explains, while volatility has been depressed in 2013, especially in the second half of the year, "it should pick up more obviously in 2014 where marginal monetary policy shifts will drive FX movement."

In broad terms, Osborne thinks that "a focus on incremental policy shifts in 2014 will favour the USD and GBP (outlook for stable policy or less accommodation) over the EUR, CAD and JPY (recent shift towards a more accommodative policy stance or risk of more accommodation)."