Tag Archives: 5.) Emerging Markets

We remain dollar bulls; this is an important data week for the US Final August eurozone manufacturing PMIs will be reported Monday; UK reports August PMIs this week RBA meets Tuesday and is expected to keep rates steady at 1.0%; BOC meets Wednesday and is expected to keep rates steady at 1.75% Swedish Riksbank meets Thursday and is expected to keep rates steady at -0.25%; in EM, the central banks of Chile and Russia meet Market sentiment rallied last week on a lot of...

The broad-based dollar rally remains intact despite the market’s overly dovish take on the Fed We still believe markets are vastly overestimating the Fed’s capacity to ease in 2019 and 2020 What’s clear is that the liquidity story is not enough to sustain EM MSCI EM FX is on track to test the September 2018 low near 1575 and then the April 2017 low near 1568 Our 1-rated (strongest fundamentals) grouping for Q3 2019 consists of TWD, PHP, CNY, THB, and KRW Our...

- Click to enlarge Market sentiment has improved after President Trump said China has asked to restart trade talks PBOC fixed the yuan basically flat and firmer than what models suggested The G-7 summit wraps up today with little to show for it We believe the Chicago Fed National Activity Index remains the best indicator to gauge US recession risks Germany July IFO business climate came in weaker than expected The lira experienced a flash crash against the yen...