Volatility has dominated exchange markets

Last year was very much characterised by range trading and low volatility in currency markets.

The dollar-euro exchange rate was mainly confined to a $1.27-$1.33 range; sterling remained within $1.55-$1.65 against the dollar, while sterling-euro spent much of the year in a narrow £0.78-£0.83 range.

Only towards the end of 2012 was there a significant breakout by a major currency, when the yen went into freefall. The opening quarter of 2013, though, has seen a lot more volatility in forex markets.