Currency Trading Is Interesting Again

by Alex Friedman | February 18, 2013

Originally published at CNBC | February 18, 2013

Side effects are unavoidable in the pharmaceutical industry. All drugs cause them, but sometimes they lead to great opportunities. Think Viagra, originally developed for angina.

So it is with central bank policy, where the law of unintended consequences is perhaps even starker than it is in drug development. In the last month or so, in an effort to stimulate growth, central bankers have begun a new round of creative experiments. This should lead to more market volatility and unexpected investment opportunities, particularly in currencies.

Take the yen, for example. The Bank of Japan (BoJ) recently announced a 2 percent inflation target and said it would pursue “open ended” asset purchases in a bid to reflate the economy. Currency traders have taken note. “Short yen” trades have surged in popularity, pushing the currency down around 15 percent against the US dollar since mid-November – the sharpest sell-off in almost two decades. Continue Reading

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Filed Under: Economics

About the Author

Alex Friedman

Alex is the co-founder of Jackson Hole Economics, a non-profit research organization which provides analysis of key topics in the political economy, and develops actionable ideas for how sustainable growth can be achieved

Alex is also the co-founder and Chief Executive Officer of Novata, a mission-driven and technology-powered public benefit corporation designed to improve the process of Environmental, Social, and Governance (ESG) diligence in the private markets. Backed by a unique consortium, which includes the Ford Foundation, S&P Global, Hamilton Lane and Omidyar Network, Novata has created an independent, unbiased and flexible platform for the private markets to more consistently measure, analyze and report on relevant ESG data.

With two decades of experience in the financial and non-profit spaces, Alex has led a number of sustainable growth and transformation efforts. He is a former CEO of GAM Holdings and Chief Investment Officer of UBS, and also served as the Chief Financial Officer of the Bill & Melinda Gates Foundation, where he created the foundation's strategic investment fund.

Alex was a White House Fellow and an assistant to the Secretary of Defense. He is a member of the Board of Directors of Franklin Resources, Inc. (Franklin Templeton), a member of the Council on Foreign Relations, Chair of the Advisory Board of Project Syndicate and a board member of the American Alpine Club. Alex also writes regularly for various news outlets and is the author of Babu's Bindi and The Big Thing: Brave Bea, both children's books.

Alex holds a JD from Columbia Law School, where he was a Harlan Fiske Stone Scholar, an MBA from Columbia Business School, and a BA from Princeton University.

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