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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
- The rise in uncertainty over the economic outlook has increased demand for 'safe' assets such as the USD, which is currently trading at a its highest level since July 2020.
- Worst performing currency has been the TRY, which is down over 26% against the USD as dovish CBRT and political uncertainty have been weighing on the Lira. Erdogan's comments earlier (supporting rate cuts amid double-digit inflation) has led to a dramatic fall in TRY (down over 11% in today's trading session).
- CEE currencies have also been experiencing elevated selling pressures despite central banks surprising the market with aggressive hikes.
- The weakness in CEE currencies put policymakers in a difficult position as a depreciating currency keeps supporting inflation expectations. On the other hand, the economic outlook keeps deteriorating in the region amid rising Covid cases therefore hiking rates too aggressively could lead to a potential recession.
- HUF is the second weakest performer this month, down 5.8% against the USD and recently reach a record low against the Euro with EURHUF breaking above the 370 key resistance this week.
- Political uncertainty has been weighing on RUB (down 5.5% vs. USD) and rising price volatility has led to a consolidation in 'risk-on' ZAR.
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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