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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.
EMERGING MARKETS
- EM currencies have been depreciating sharply in June with the global economic outlook constantly being revised to the downside, with Latam FX and TRY standing at the bottom of the table.
- BRL has been the worst performing currency among the EM world, down nearly 8% against the US Dollar despite the BCB hiking by 50bps (levitating the Selic rate to 13.25%, highest since the start of 2017).
- USDBRL has been approaching its key resistance at 5.25, which corresponds to the 200DMA; next level to watch above that stands at 5.40.
- Momentum on CLP has also been bearish, down 6.8% against USD this month, as the peso has been impacted by the economic slowdown and the fall in copper prices.
- USDCLP broke above the 876.15 key resistance this week and is currently trading at an all-time high.
- Dovish CBRT and negative real yields continue to weigh on TRY, which also stands among the weakest-performing currency this month and is the weakest FX performer this year.
- The CBRT is meeting on June 23 and is (again) expected to maintain its 1W repo rate steady at 14% despite inflation nearing 75%.
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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