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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
- In the past two months, the deterioration in the economic outlook (particularly in the Euro area) combined with the geopolitical risks have been weighing significantly on the Euro, which is down over 7% against the US Dollar since the beginning of June.
- The Euro weakness has also been weighing on the CEEMEA currencies, which have been very sensitive to the Russia/Ukraine dynamics.
- This chart shows the performance EM FX relative to the single currency since the start of June.
- Interestingly, the CZK has remained strong in the current environment, as it seems that the new CNB board is more keen on protecting the exchange rate via FX interventions (than hiking interest rates) in order to counter the elevated inflationary pressures.
- Asia FX have also been appreciating sharply against the Euro, with HKD (as 'pegged' to the USD), CNY and MYR being the top performers up 7.2%, 6% and 5.7%, respectively, against the Euro.
- At the bottom, CLP has been the worst performing EM FX so far, down 12.3% against the Euro, partly driven by the sharp depreciation in copper.
Source: Bloomberg
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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