Currency

For nearly one month, the renewed strains experienced by US long rates following the good October employment data (despite the shutdown) have triggered a new correction on the part of emerging currencies (even though they have stabilised somewhat of late).

François Hollande, the French President, recently called for action against the strong euro, stating that the economy could end up with an exchange rate “out of line with the fundamentals”. Although plausible, exchange rates are probably “out of line with the fundamentals” most of the time...

PIMCO, a leading global investment management firm, has listed the PIMCO Foreign Currency Strategy Exchange Traded Fund (Ticker: FORX), created to offer investors the potential to benefit from fundamental changes in global currency dynamics by diversifying away from the dollar.

In spite of increasing volatility in foreign exchange markets, only around half of companies that were surveyed hedge foreign exchange risks in Renminbi transactions...

The emerging markets (EM) ‘grand narrative’ that you hear constantly churned out is at best misleading and at worst dangerous...