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24 Sep 2014
USD taking advantage of lack of confidence - RBS
FXStreet (Guatemala) - USD strength still is apparent, noted by RBS analysts, but they explained further…
Key Quotes:
“As the market loses confidence in the global growth outlook, led by concerns over growth in China and several other emerging countries, the losses are more noticeable in the last week in commodity and some EM currencies”.
“EM equities and bond markets have underperformed major markets in recent weeks and commodity price falls have been more broad-based. The market is de-risking somewhat from EM markets and this is spilling over to currency performance”.
“We may not move into a complete 'risk-off' environment; global policy easing should keep the market looking for higher yielding opportunities. However, now that we are likely to remain in a relatively strong USD environment and there are growth challenges in EM, it would not surprise to see further weakness in EM and commodity currencies”.
“After its particularly rapid rise over the last month, we expect USD/JPY to consolidate. Japan PM Abe's comments today reflect internal and external pressure to stabilise the JPY”.
Key Quotes:
“As the market loses confidence in the global growth outlook, led by concerns over growth in China and several other emerging countries, the losses are more noticeable in the last week in commodity and some EM currencies”.
“EM equities and bond markets have underperformed major markets in recent weeks and commodity price falls have been more broad-based. The market is de-risking somewhat from EM markets and this is spilling over to currency performance”.
“We may not move into a complete 'risk-off' environment; global policy easing should keep the market looking for higher yielding opportunities. However, now that we are likely to remain in a relatively strong USD environment and there are growth challenges in EM, it would not surprise to see further weakness in EM and commodity currencies”.
“After its particularly rapid rise over the last month, we expect USD/JPY to consolidate. Japan PM Abe's comments today reflect internal and external pressure to stabilise the JPY”.