Currencies In-Depth

Executive Summary Markets Priced For A Restrictive Level Of Australian Rates Markets Priced For A Restrictive Level Of Australian Rates…

Listen to a short summary of this report.     Dear Client, In lieu of our weekly report next week, I will be hosting a webcast on Tuesday with my colleague Mathieu Savary, Chief European Strategist, on the implications of stagflation on European assets and global FX markets. I look…

Listen to a short summary of this report.     Executive Summary The Currency And Interest Rates: On A Collision Course? The Currency And Interest Rates: On A Collision Course…

Executive Summary The RMB And Real Interest Rates The RMB And Real Interest Rates…

Executive Summary Lots Of Pent-Up Demand Lots Of Pent-Up Demand…

Executive Summary The Euro And Relative Growth The Euro And Relative Growth…

Highlights The strength in the Swiss franc will moderate going forward. This suggests that EUR/CHF is a buy, while USD/CHF will remain in a tight wedge. With Omicron likely to rage across economies, including Switzerland, the Swiss National Bank will have to use currency weakness as a tool to…

Highlights UK GDP is on track to overtake pre-pandemic levels. This will strengthen the case for the BoE to tighten monetary policy. That said, markets are aggressively pricing in a hawkish BoE. This creates room for near-term disappointment. The post-Brexit environment still remains volatile…

Highlights A lot of pessimism is embedded in the Aussie dollar, making it a potent candidate for a powerful mean-reversion rally. The key catalyst will be a reversal in COVID-19 infection rates which are holding the Aussie economy hostage. Marginally, there is good news on that front. On a…

Highlights The yen is the most underappreciated currency in developed markets today. Our bullish thesis on the yen rests on a simple pillar: Japan will successfully overcome the pandemic like its Western counterparts. This good news is not yet reflected in the price of the yen or Japanese…