Currency commotion drives funds to sidelines

New York

AMID the commotion surrounding the European Central Bank (ECB) meeting and US employment report last week, some traders in the US$1.3 trillion-a-day euro-dollar market are rushing to the sidelines.

There isn't much profit to be made trading on the ECB's decision to expand stimulus while the US Federal Reserve inches closer to raising interest rates, according to UBS AG and OppenheimerFunds Inc. That's because both moves were widely telegraphed and the monetary-policy divergence trade that's ruled currency markets this year is worn out.