Currency performances diverged in October. The USD was broadly stable, but the JPY fell while most other major currencies rallied. The different currency moves reflect the market’s repricing of changing monetary policy positions. The divergence may also lead to more FX volatility…
Economy and Interest Rates
Global growth concerns (Delta-variant, supply-side bottlenecks, China) are showing up in softer data releases as well as downward growth revisions. In our view, these factors are temporary and unlikely to derail the global recovery.
The USD was range bound in October, up versus the JPY, flat versus the EUR and down versus most other major currencies. In EM, the TRY fell sharply followed by BRL, while the RUB gained further ground (oil).
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