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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
EM FX
- After failing to break through its 110 resistance in the end of May, the ADXY index has been trading sideways oscillating around 109.60 in the past week slightly supported by its upward trending support line.
- Asian currencies have benefited from the USD weakness since March 2020, with the ADXY Index up 10%; a break above 110 would open the door for a move up to 112, its January 2018 high when liquidity peaked in the EM market (pre-Covid).
- Legendary investors Stanley Druckenmiller mentioned a few months that he was turning bullish on Asian currencies amid the strong divergence in debt between Western economies and Asian economies.
- While the debt-ratio in Western economies has dramatically increased in the past 15 months, the rise in the debt-to-GDP ratio has been significantly lower in the Asian economies, which should lead to a divergence in growth expectations in the medium to long run.
- Empirical studies have shown that countries with increasing and elevated debt-ratios tend to experience lower GDP growth than countries with steady debt ratios.
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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