After plunging at the beginning of the Corona crisis, economic sentiment has recovered across the board. Still, there are differences which can be used systematically in currency markets.
Economy and Interest Rates
Global economic activity continued to recover in July and forecast revisions have broadly changed to the upside. North Asia continues to lead the recovery followed by Europe and the USA, while other Emerging Markets, notably in South America, are lagging behind.
The USD has dropped on balance 3.5% over the last month but not equally. European currencies (EUR, CHF, GBP and SEK) have been strong gainers versus the USD irrespective of their fundamental strengths and risk issues, while…
Going into more detail: Based on our proprietary analytical framework to take scalable exchange rate positions we are taking a close look on individual currency pairs.
The USD declined further in May as vaccination and recovery momentum increased in other economies...» more