Tag Archives: currencies forecasts

Up to now, emerging market (EM) currencies have been resilient in the face of market turmoil.Our EM FX scorecard, which ranks 10 EM currencies according to key criteria (such as growth and vulnerability to external shocks) saw few changes over the past month. The Fed’s current hawkish attitude remains a headwind for EM currencies, at it increases funding costs. That being said, the weakest EM currencies have seen some stabilisation, particularly for the Turkish lira and the Argentinian peso....

Although close to the end of a long-term up-cycle, the dollar has the potential to recover ground lost recently given the outlook for Fed rate rises and balance sheet reduction.Our latest forecasts for major currencies over the coming months can be summarised as follows:US dollar. In terms of duration and valuation, the USD up-cycle is likely close to ending. However, the USD is likely to remain strong on the back of robust US growth and the outlook for inflation. It should also benefit from...