31 Jan 2014
Flash: EM instability leave G10 unaffected so far - Danske Bank
FXstreet.com (Barcelona) - Anders Møller Lumholtz, Senior Analyst at Dankse Bank notes that the recent jitters in emerging markets have led to marked sell-offs in the currencies of affected countries but there were only minor repercussions in the G10 sphere.
Key Quotes
“CHF and JPY have gained but notably EUR/USD is little changed in recent weeks. We think the key reason is trust in the Fed’s willingness to adjust policy if necessary and in
positioning.”
“We take a closer look at EUR/USD and argue why we still believe EUR/USD will head lower as 2014 progresses. That said, we have actually seen a move lower in EUR/USD over the past 24 hours after the FOMC Wednesday night paid little attention to the EM jitters.”
“Furthermore, the low German inflation numbers supported our view that the euro might face headwind from further ECB easing in 2014.”
Key Quotes
“CHF and JPY have gained but notably EUR/USD is little changed in recent weeks. We think the key reason is trust in the Fed’s willingness to adjust policy if necessary and in
positioning.”
“We take a closer look at EUR/USD and argue why we still believe EUR/USD will head lower as 2014 progresses. That said, we have actually seen a move lower in EUR/USD over the past 24 hours after the FOMC Wednesday night paid little attention to the EM jitters.”
“Furthermore, the low German inflation numbers supported our view that the euro might face headwind from further ECB easing in 2014.”