FX markets were relatively stable over the last month despite increased uncertainties. In our view, the struggle for direction in FX is likely to
continue near-term. However, longer-term FX fundamentals are taking shape. Last month we discussed inflation dynamics. This time we take a closer look at current account balances. It is too early…
Economy and Interest Rates
The spread of the Delta-variant and supply-side bottlenecks have resulted in economic data dis-
appointments and higher inflation reports. In our view, these factors are temporary and unlikely to derail the global recovery….
FX markets traded in a range over the last month between global growth concerns and relief over the likely delay of Fed tapering. Notable was the intervention by the Swiss National Bank, which pushed EURCHF back to 1.09. EM currencies were mixed, but…
The USD rally stalled in the second half of July. The best performing currencies over the last month were the CHF and the JPY, which both benefitted from rising risk aversion. EM currencies were mixed,…