24 Mar 2015
EM currencies recovering vs. USD – JP Morgan
FXStreet (Edinburgh) - Analysts at JP Morgan remarked the positive performances of currencies in the EM space following the recent USD softness.
Key Quotes
“The consolidation of the broad dollar over the week offered some respite for EM currencies, though most underperformed the euro”.
“EMEA EM currencies notably led the pack, with RUB, HUF, PLN, RON and ZAR appreciating by at least 3% versus the dollar, and even outperformed the euro between 0.2-0.6%”.
“Meanwhile, EM FX underperformers over the week included PHP and MYR, which weakened 1.3-1.5% versus the dollar, fading the post-FOMC rally as the dominant driver for Asian currencies remains policy, and central banks are likely to capitalize on any delays in the beginning of a Fed lift-off to implement further currency weakening, whether through direct intervention or additional rate cuts”.
“Indeed, while several Asian FX markets saw modest appreciation versus the dollar over the week, none strengthened versus the euro. Outside of EM Asia, BRL and PEN also ranked among underperformers”.
Key Quotes
“The consolidation of the broad dollar over the week offered some respite for EM currencies, though most underperformed the euro”.
“EMEA EM currencies notably led the pack, with RUB, HUF, PLN, RON and ZAR appreciating by at least 3% versus the dollar, and even outperformed the euro between 0.2-0.6%”.
“Meanwhile, EM FX underperformers over the week included PHP and MYR, which weakened 1.3-1.5% versus the dollar, fading the post-FOMC rally as the dominant driver for Asian currencies remains policy, and central banks are likely to capitalize on any delays in the beginning of a Fed lift-off to implement further currency weakening, whether through direct intervention or additional rate cuts”.
“Indeed, while several Asian FX markets saw modest appreciation versus the dollar over the week, none strengthened versus the euro. Outside of EM Asia, BRL and PEN also ranked among underperformers”.