The dynamics of markets is a strong reminder to investors: FX also matters! As currency experts, we at QCAM are always close to the markets to analyse risks and opportunities and turn that into successful investment strategies.
Emerging Markets FX divergence
The performance of EM currencies in 2021 has diverged significantly. The primary driver was central banks’ resolve to fight inflation. Improving global growth conditions should be good for EM FX, but large differences are likely to prevail because of diverging economic fundamentals, political conditions and central bank reactions…
Economy and Interest Rates
Global economic activity has reaccelerated in the fourth quarter of last year. The Omicron variant is expected to temporarily disrupt but not to derail the recovery path. The decoupling of social and economic mobility from Corona cases should continue, while supply-bottlenecks start to ease…
The USD and FX markets broadly were range-bound in December. Among major currencies, the GBP performed best, while the JPY fell the most. EM currencies were also in a range, but with a wider spread and the TRY on a roller-coaster of its own…
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