Central bank interest rate divergence, geopolitical events, and global growth expectations have been the three primary drivers of FX market volatility in late 2014, and these themes will continue to dominate the currency trade well into 2015. With so many economic and geopolitical variables in play, it is highly unlikely the FX market will succumb to the historic volatility lows witnessed in the summer of 2014. Moreover, the U.S. Federal Reserve’s decision to turn off the liquidity spigot has propelled currency markets. Central bank policymakers remain on guard, however. They’re eager to soothe anxious investors who ... (full story)