The market needs to move toward a more favourable and desirable location, and allow participants to have much greater confidence that the market is functioning appropriately. A well-functioning foreign exchange market is very much in the interest of all market participants.
They fear that households have become overextended and will need to rein in their spending to keep their debt burdens under control. My view, however, is considerably more sanguine. Although there are pockets of financial stress among households, the sector as a whole appears to be in good shape. Certainly, households have taken on quite a bit of debt over the past several years.