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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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Free AccessEM currencies are on the edge as...>
EMERGING MARKETS: EM currencies are on the edge as US 10y Tsys prepare for a
retest of 3.00%. Further to our Bullet of 26/04, the JPM EM Currency index has
broken its two-year uptrend at 68.015, now testing the Nov 2017 low.
- Among other key moves, the Brazilian Real broke lower today to a 22-month low
through the key Brl3.51 level vs USD, setting up a move to the Brl3.60s. South
African Rand broke lower yesterday to a four-month low (currently Zar12.6040).
- This would be consistent with broader USD strength, particularly against
commodity FX. JPM EM FX 90-day correlation is highest with AUD (0.75), which
bodes ill for Aussie amid a break of the 0.7500 level, bad seasonals, and
narrowing yield differentials.
- Non-commodity EM FX is also looking weak. As noted this morning by our FX
team, the Polish Zloty is 2.9% weaker against the EUR since printing Pln4.1510
(Apr16 low) and despite relatively positive data flow in Poland. Next key level
is Pln4.2924 (May1 high), and next up, Pln4.3179 (50% long-term fibo
4.5064-4.1293). Eur/Pln last Pln4.2781.
To read the full story
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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.