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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
- We previously saw that investors have historically viewed energy commodities as the best 'inflation hedges' when inflationary pressures start to rise.
- This chart shows that oil is the best performing commodity when inflation is accelerating, averaging 1.9% in monthly returns.
- Hence, as oil prices continue to trend higher (Brent recently broke above key LT downward trending resistance), support for RUB and COP has been strong, which have been the best performing currencies this month among the EM world, up 1.2% and 1.1%.
- The table below shows the sensitivity of the major oil producers (>0.5 mil bpd) EM FX to changes in oil prices (Brent). We can see that both RUB and COP are still very sensitive to movements in oil prices.
- On the other hand, MXN has performed poorly this month (down 0.5% against USD).
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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