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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.
FOREX
- In the past month, the risk-on environment triggered by the sharp drop in price volatility combined with JPY weakness has generated a ST rally in risky assets.
- The chart below shows that both the Aussie and China equities, which had been consolidating since February due to the sharp deceleration in Chinese economic activity, have experienced a strong rally this month.
- However, investors are skeptical if the current environment can continue in the coming weeks: falling liquidity, rising uncertainty (i.e. more Covid restrictions), stronger USD are all major risks for global asset prices.
- Hence, a sudden increase in price volatility (i.e. VIX) would lead to a clear reversal in market's current trends (i.e. cheaper Aussie and falling Chinese equities).
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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