Citywire reports about our alarming asspumtion of the increasingly large deviations in purchasing power parity. Thomas Suter, CEO of QCAM, is talking about rising hedging costs and nimble operators.
Increasingly large deviations in purchasing power parity should be seen as a warning sign to investors.
This is according to the latest monthly update from currency asset manager QCAM. They stated that the purchasing power parity indicator currently reads four points out of five.
The average absolute deviations from PPP for all nine exchange rates between the dollar, euro, yen, pound and franc have broken this barrier only twice previously…