Head of investment research for FXPRIMUS, Marshall Gittler, was interviewed live on Bloomberg today, in order to discuss a range of fundamental themes affecting the currency markets. He was asked for his views on the uncertainty of the Sterling following the ‘Brexit’ referendum, as well the Yen, emerging markets currencies and carry trades.
Yen is one of the more controversial currencies and there is a lot of uncertainty about where the Yen is headed…,” he stated.
Having lived in Japan as a high level financial analyst for top tier investment banks, Marshall Gittler has a wealth of experience researching the Japanese Yen, as well as other global currencies and investments.
We’re in a period of total uncertainty, but still there’s money to be made with Sterling,” he added. “Nobody knows what could happen in two years from now [in the UK]… Scotland and Northern Ireland could spin off. As a result sterling is likely to be extremely volatile and that’s good for traders. A lot of volatility, a lot of opportunities… Sterling is the focus of risk right now. The most volatile pair at that moment is GBPJPY – we saw like a 2.8% range yesterday in that pair. Amazing!”
When asked the question “What do I buy in global currencies and what do I sell?”, Gittler responded:
On a short term trade, I think you would be buying sterling today and selling yen. I can’t even say that this would last until tomorrow. I would say longer term, if you’re a medium term investor, I think uncertainty means a stronger dollar. We’ve seen it consistently in history that when things get tough, people buy the US… So I am pretty confident in the dollar right now.”