Forex structurers get it wrong

Diversifying into currency volatility became a huge theme for the creators of structured products last year. So what happened next was disappointing. The markets did not move as violently as anticipated, profoundly damaging the way in which these very same structurers were able to profit from the asset class. Magda Ali investigates

The coming year was predicted to go down in the history of foreign exchange trading as one of the most volatile as the eurozone crisis deepened. The euro has been in freefall since October 2011, and depreciated further at the start of this year, trading at $1.2742 on January 6, according to data from Thomson Reuters. But forex markets have surprised investors in recent months. In February, forex volatility eased dramatically, and the euro forex market is now expected to return to a lower