Free Trial
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 US Dollar has been consolidating higher in the past week despite the 'big NFP miss' last Friday, mainly driven by a rise in price volatility with VIX approaching the 20 level.
- Investors are currently trying to price in the Fed taper:
- On one hand, If the Fed starts to delay its tapering announcement to 2022 amid rising uncertainty over the Delta variant and the constant deterioration in economic data, the US Dollar could continue to consolidate lower, therefore supporting risky assets.
- On the other hand, if the Fed remains firm on its tapering decision with policymakers announcing it at the November meeting for a December start, preference for the US Dollar could start to accelerate again, therefore weighing on risky assets (especially EM equities).
- Interestingly, momentum on the ZAR has remained firm, with the 'EM carry currency' up 2.7% against the greenback since the start of the month.
- On the other hand, the BRL has been very vulnerable this month, mostly driven by the political turmoil amid escalation in tensions between the branches of government. USDBRL rose by nearly 3% today to a high of 5.33.
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.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok