Markets Are Inefficient, Conclude Delegates

A straw-poll of conference delegates conducted by Jessica James, director in the risk advisory group at Citigroup, suggested the myth that foreign exchange markets are efficient has been dispelled. James said none of the delegates she had questioned believed currency markets are efficient.

Foreign exchange is likely to be less efficient than other asset classes because the majority of trades are executed for hedging purposes rather than for direct investment, explained Thanos Papasavvas, currency strategist at Credit Suisse Asset Management in London.