News

FX Monthly March 2019 >> What the Fed’s policy shift means for the dollar

  • 13.03.2019
  • FX Monthly

QCAM Insight

What the Fed’s policy shift means for the dollar: The minutes of the latest FOMC meeting confirm that the Fed is turning dovish. So far, this shift has not had a big impact on the general direction of the USD. But that might change if the Fed adopts a new approach to inflation targeting. Our thoughts about the inflation expectations and the USD trend.

The macro perspective

Strong exports lift the Swiss economy: Even though global growth has slowed, risk of reces­sion remains low. Switzerland’s strong foreign trade performance defied the flagging worldwide trend. But domestically the Swiss economy is showing some signs of weakness. Nonetheless, low interest rates and a remarkably strong labor market continue to provide support. Our comment about the impact for Switzerland of the global economy.

FX market talk

The strong and the weak in emerging market FX: Emerging market currencies generally remain cheap relative to the US dollar. Despite some recent strengthening, our valuation measures indicate fur­ther appreciation potential for EM currencies against the US dollar, but less so against the euro and the Swiss franc. But there are big differences in the fundamentals of the various EM currencies. Our assessment of the emerging market currencies.

Download: FX Monthly March 2019

 

Follow-Up results

This is next in your query
QCAM Monthly June 2021 >> The new theme on the block

The USD declined further in May as vaccination and recovery momentum increased in other economies...» more

QCAM Monthly May 2021 >> Mixed picture with e...

The USD fell back in April as the rise in US interest rates faded. No strong trend has yet emerged a...» more

QCAM Monthly April 2021 >> Ides of March or A...

The USD strengthened in March on the back of improved economic sentiment and rising bond yields. The...» more

QCAM Monthly March 2021>> A “tantrum” for...

News over the last month were on balance growth friendly and lifted risky assets but inflation conce...» more