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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
- Last week's round of central bank meetings reinforced the key divergences playing out in a number of EM countries, with rising inflation forcing some into hiking cycles while others remain on hold with more moderate price pressures.
- The SARB & CBR are two examples of this, with more dovish factors filtering through into the SARB's reaction function while the CBR becomes more hawkish as July CPI heads towards 6.8-7.0%.
- Hence, the policy divergence play has seen RUB/ZAR appreciate +3.4% last week and may continue to rise as expectations for USD strength around the FOMC meeting and general risk-off conditions leave ZAR relatively more vulnerable than the RUB
- The cross found a new swing low in June around 2018 lows at 0.1835, but has since moved above the 0.200 level, and may hold onto gains towards the end of the week as markets price in potential for positive US-Russia strategic stability talks.
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
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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