Insights

Currency markets experienced heightened volatility in March, but without much to show for it in the end, as most major FX pairs closed the month nearly unchanged.

At the epicenter of this volatility was the US dollar, which initially got knocked down by disappointing labor market data, before it recovered those losses with some help from hot inflation readings. The euro and sterling matched the dollar’s monthly performance, although the Japanese yen was not so fortunate.

It briefly fell to its lowest levels in three decades, forcing Japanese authorities to threaten another round of FX intervention. In contrast, gold prices went through the roof, rising by 9% to hit new record highs. While there are several forces at play, the main element behind this stunning rally in gold seems to be direct demand from central banks.

March was a great month for the IXI Grow Fund. The strategy delivered significant returns capitalizing on the market moves which proved to be robust and directional. The prevailing tone became evident quite early, with notable gains accumulating during the first week of March while the rest of the month proved equally productive with many days contributing to the overall performance.