FX Convictions – Monetary policy divergence back in play?

by: Georgette Boele , Roy Teo

151102-FX-Convictions.pdf (362 KB)

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  • Risk-on environment and additional monetary stimulus push EM FX higher
  • The USD recovered after the Fed… and dovish ECB weighs on euro
  • We closed our USD longs versus euro and SGD on 15 October…
  • …while we keep our USD longs versus Japanese yen, Australian and New Zealand dollar in place

151102-FX conv1

151102-FX conv2