JPMorgan has warned that the FX market is pricing in an environment that leaves no margin for error on data or policy during the next two months.

Relatively stable FX markets during the current summer lull have pushed volatility down to its lowest level of the year.

For those hoping that the holiday period will usher in some calm on the world’s currency markets, there is likely to be disappointment.

The Swiss National Bank further diversified its reserve holdings in the second quarter as it increased holdings in “other” currencies by a third as at the end of June, figures released by the central bank today showed.

Deutsche Bank has launched the next generation of its Autobahn – the FX platform that revolutionized electronic trading in the past decade – which it says will redefine the way trading is conducted with its clients.

Technical analysts at Commerzbank – voted number one for banks in this year’s Euromoney FX Survey – see no respite for the single currency, as the EUR plunges to a two-year low against the USD.

There is no shortage of recommendations to sell the EUR after last week’s decision by the European Central Bank (ECB) to cut its deposit rate to zero, but where will buyers come in?

The renminbi is likely to weaken as Chinese corporates pay back their offshore foreign-currency liabilities.

If you are looking for the near-term direction of the euro, you are better off asking a German toolmaker than a Mayfair hedge fund manager.

Flow data from UBS shows investors last week were the heaviest sellers of euro-denominated equities since July 2008, as concerns over the currency block escalated.

For those wondering why the prospect of further monetary easing is not weighing more heavily on the pound, there is a relatively simple explanation.

New-found government resolve in Brazil to avoid additional BRL weakness has materially improved the currency’s outlook, according to a strategist at ING.

Western Europe is the key battle ground in the quest for supremacy in the global FX markets, asserts Jeff Feig, Citi’s global head of G10 FX.

The latest CFTC data showed EUR short positioning was at record levels, but proprietary positioning trackers of leading FX banks tell a different story.

The prospect of a Greek exit from the euro has prompted hedge funds to make a fresh assault on the Swiss National Bank’s resolve in maintaining its SFr1.20 floor in EURCHF.

The chance of a Greek exit from the euro is on the rise, and so the question for investors has turned from why is the single currency so strong, to how low can it trade and how fast.

Currency speculators on the CME turned to the dollar, yen and sterling, as concerns over Greece’s fiscal crisis and worries over global growth pushed investors toward safety.

Natixis has hired a former UniCredit FX salesman to cover sales to hedge funds and other financial institutions.

A €700 billion pool of maturing eurozone bank debt might be removed as a pillar of support for the euro if investors migrate into US credit markets.

FX momentum strategies can yield “surprisingly” high excess returns, according to a new study due to be published in the Journal of Financial Economics, which adds more weight to the view that FX is an asset class in its own right.

The Swiss National Bank’s (SNB) disposal of euros in the first quarter suggests it might abandon its attempts to rein in the franc, despite protestations to the contrary.

Asian FX reserve managers are making it hard for EURUSD to break out of its tight trading range as they seek to improve the low returns on their FX portfolios by selling options.

The Bank of England’s (BoE) quantitative easing cycle is likely to have finished, say economists at Barclays and RBS, and a more hawkish BoE stance will provide support for the pound, despite GDP estimates thrusting the UK back into recession.

Australian retail FX is booming, thanks to a healthy domestic market, the access it provides to fast-growing Asia and a friendly regulatory environment.

Benign inflation data has weighed on the AUD and is likely to kick-start the Reserve Bank of Australia’s easing cycle when it meets next month. However, the government’s “stealth war” against the currency could be of greater importance.

Barclays predicts a set of policy initiatives by the Chinese authorities to liberalize the movement and trading of the renminbi, heralding full liberalization of the country’s capital account by 2015, according to Asiamoney.

The euro is the most undervalued G10 currency on a purchasing power parity (PPP) basis, according to Morgan Stanley.

The confusion over the Federal Reserve’s monetary-policy stance has heightened, as the central bank flip-flops between hawkish and dovish rhetoric.

Troy Rohrbaugh, JPMorgan’s global head of FX, believes he might be in a more advantageous position than some of his competitors.

If HSBC were to operate as a fully integrated global FX business, just how much more profitable could it be for the bank?