29 Apr 2016
USD to weaken further vs EM currencies - Danske
According to analysts from Danske Bank the US dollar will weaken further against emerging market currencies.
Key Quotes:
“We believe that the USD will weaken further articularly versus EM currencies but short term also versus the JPY. Near-term, it is difficult to see what should stop the JPY rally given BoJ’s inaction.”
“The rebound in the Chinese construction sector should benefit mining-intensive currencies in Latin America and Africa, while it should also benefit Asian currencies given trade links.”
“Higher inflation should support the USD versus the EUR on relative rates as positioning is now much cleaner. However, we maintain our long-held view that the cross will head higher in H2 as fundamentals remain supportive.”
Key Quotes:
“We believe that the USD will weaken further articularly versus EM currencies but short term also versus the JPY. Near-term, it is difficult to see what should stop the JPY rally given BoJ’s inaction.”
“The rebound in the Chinese construction sector should benefit mining-intensive currencies in Latin America and Africa, while it should also benefit Asian currencies given trade links.”
“Higher inflation should support the USD versus the EUR on relative rates as positioning is now much cleaner. However, we maintain our long-held view that the cross will head higher in H2 as fundamentals remain supportive.”