The butterfly effect

The bottom line is that global liquidity conditions and riskaversion levels will remain key factors for both currencies in the months ahead.

“I’m worried about the butterfly effect,” Staskow says. “Global cash has been very loose for a long, long time. A move toward risk aversion will weigh on these currencies. You can’t ignore the increasing presence of retail traders in the FX and stock markets. They will get the margin calls and be forced to sell.”