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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.
EM FX
- The USD has been constantly reaching new lows in the past two weeks following Powell's 'dovish' speech at Jackson Hole in addition to the 'big NFP miss' on Friday.
- While net specs on the Dollar continue to reach new highs (highest level since October 2019), a rising number of investors are speculating that the Fed may need to delay its tapering due to the sharp deceleration in the economic activity (globally).
- Since the start of the month, the risk on environment has been strongly favorable for the ZAR, also known as the EM carry currency, which is up nearly 2% against the USD.
- The HUF also continues to perform strongly amid hawkish NBH; strong forint has been supporting Hungarian equities with the BUX index trading at a record high above the 52,000 level.
- On the other hand, BRL, THB and COP have been the weakest performers this month, down 0.8% against the USD this month.
- Broad USD weakness also continues to support EM equities; EEM is up nearly 8% since Aug 20 and is currently testing key resistance at 53.40 (100D and 200D SMA).
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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