Turbulence ahead: currency volatility is coming

Prashant Sharma and Russell Taylor, JP Morgan Asset Management

The past few weeks have been focused on the developing situation in Greece. So far markets remain sanguine, with continental equities near seven-year highs and peripheral bond spreads still contained. When we think about the relatively stoic market reaction to the Greek debt situation and last week’s last-minute euro-style compromise, this makes sense given the stronger framework of European banks and governments relative to a few years ago.