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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
- In recent weeks, the escalating tensions between Hungary / Poland and the EU (series of legal disputes) combined with the rise in uncertainty over the Delta variant have been weighing on CEE currencies, especially HUF and PLN.
- HUF is the worst performer this month among the CEEMEA market, down 2.4% against the USD, followed by PLN (-1.7%).
- In addition, forward rates have been falling in {PD} Poland amid dovish NBP as the majority of the board (including Governor Glapinski) still aim to keep interest rates low as the uncertainty over the economic recovery remains elevated.
- Hence, momentum on equities have been fading in the past few weeks; periods of currency depreciation in the EM markets are usually associated with equity weakness.
- For instance, the chart below shows the strong co-movement between USDPLN (inverted) and WIG20 index in the past cycle.
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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