Risks of imminent interest rate increases
Volatility on the currency markets has been so low in recent years that many investors no longer even pay attention to currency risks. This could soon change in view of rising interest rates. Especially investments in emerging markets and in commodities should therefore pay attention.
Currency trading is very popular with brokers, among other things, because of the high volatility. However, those who have dabbled in currency trading because of the high level of excitement have recently been rather out of place in FX markets. In recent years, currency volatility has been low by historical standards, mainly due to low inflation and zero interest rate policies. Some currency traders have migrated to crypto markets as a result. The macro environment is changing right now; consumer prices are rising, and interest rates will also rise again soon.