, Columnist
A Glimmer of Hope for Macro Hedge Funds
The era of central bank distortion of market prices may be ending.
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In recent years, hedge funds pursuing the style known as global macro have underperformed their peers. Shifts in the foreign exchange market, though, may presage the arrival of an environment less hostile to their investment technique.
The dollar is near its weakest against the euro in more than three years. The U.S. currency has been on a wild ride in recent trading sessions, buffeted by perceived U.S. trade-war threats that prompted a stinging rebuke from the European Central Bank. Its moves this month have been sufficiently violent to drive volatility in the currency market up from its lowest in more than three years.