14 Apr 2014
Environment still favours carry trades - RBS
FXStreet (Bali) - Greg Gibbs, FX Trading Strategist at RBS, notes that central bank policies in developed economies (ECB, BoJ, Fed) continue to encourage carry trade plays.
Key Quotes
"Easy monetary conditions in the US and Japan and the prospect of more from the ECB are keeping carry trades supported despite significant risks from Ukraine and China. The outlook for the US economy is improving but it may take some time for this to reinvigorate demand for the USD."
"We start this week in watch-and-wait mode. Key events this week include Chinese data – we see downside risks for commodity currencies from a slowing Chinese property market. Rising tensions in Ukraine and ECB dovish comments may work against the EUR modestly."
Key Quotes
"Easy monetary conditions in the US and Japan and the prospect of more from the ECB are keeping carry trades supported despite significant risks from Ukraine and China. The outlook for the US economy is improving but it may take some time for this to reinvigorate demand for the USD."
"We start this week in watch-and-wait mode. Key events this week include Chinese data – we see downside risks for commodity currencies from a slowing Chinese property market. Rising tensions in Ukraine and ECB dovish comments may work against the EUR modestly."