FiREapps latest research (Q1 2017) on companies* in America and Europe reporting negative currency impact showed the number of companies reporting negative currency impact and the size of this impact:

Source & Copyright©2017 - FiREapps 

FiREapps comment that: “The last five quarters have all seen higher volatility than in 2013 and 2014 – a period of low volatility which was followed by a $14.66 Billion increase in negative currency impacts between Q3 2014 and Q4 2014. Looking to previous quarters, there is a pattern of low volatility followed by a steep increase in volatility and negative currency impact..

FiREapps Conclusions:

• The decrease in the number of companies reporting shows that many multinationals are still not aware of what their risks are and have been lucky to sustain only minor impacts during the last few low volatility quarters. However, those corporations who are not managing their FX risk and hedge ratios will likely be caught off guard by a spike in volatility that is sure to come.
• Although we have recently experienced four quarters of low volatility, history has proven that it will not last – volatility is caused by surprises, meaning it is impossible to speculate on what will affect FX and when, as can be seen on the supplemental chart: 11 Currency Crises in 13 Quarters, see below:

Source & Copyright©2017 - FiREapps  

———

* A total of 228 companies – 213 in North America and 15 in Europe – reported negative currency impacts.