The impact of the corona crisis on FX remains mixed. Emerging markets and commodity currencies are clear losers. The USD has seen sharp swings versus major currencies but on balance remains unchanged. This is unlikely to change much in the short term.
Recovery is setting in step by step moving from East to West, but the upmove is likely to be slower than the downmove, leaving some lasting damage.
FX volatility has declined over the last month but less so in Emerging Markets. The USD remains overvalued versus most currencies, but hedging is now also cheaper.
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.
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