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.
EMERGING MARKETS
- As inflationary pressures continue to rise in the CEE region (including Turkey), real yields have been plunging to deeper negative territory, therefore leaving the domestic currencies vulnerable.
- With an inflation rate above 70%, Turkey remains at the bottom of the League with a current 10Y real yield of -53.5%.
- We saw this morning that the expected inflation for the next 12 months surged to 37.9% in June, which was the highest inflation expectations read since the 49.5% print in 2001.
- Czech Republic 10Y real yield is also trading at historical lows with the inflation currently standing at 16%.
- Hence, the ‘deep’ negative yields among the CEE region have been weighing on the domestic currencies this year, pressuring CBs to act as a significant currency depreciation keeps de-anchoring inflation expectations.
- TRY has been the worst-performing currency this year among the EM world, down over 23% against the USD.
- We also find a lot of CEE FX as bottom performers, with HUF down 14.3% against the USD, also one of the weakest-performing currencies among EM.
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