MXN, BRL likely to continue to underperform
Jan 06, 2016 07:48 am UTC| Commentary
Rising global demand and lower oil prices under - valuates the MXN in the short term, as compared to its long term fair value. At the moment, Mexicos monetary policy is completely tied with the U.S. The traders do not...
Commodity and EM currencies bore the brunt of the New Year's sell-off
Jan 05, 2016 03:14 am UTC| Commentary
Currencies started 2016 on a weak note. China depreciated the Chinese yuan beyond 6.50 against the US dollar. Closing at 6.5338 yesterday, the CNY fell 0.6% on the first trading day, after a full-year decline of 4.5% in...
China’s economic slowdown in part of the restructuring plan
Jan 05, 2016 02:41 am UTC| Commentary Economy
Chinas economic slowdown is just the beginning. This is part of the grand restructuring plan that has to go through. The persistent weakening of the CNY, a bubbling domestic bond market, and an erratic stock market shall...
Oil, inflation and politics to drive MXN, BRL price action
Jan 04, 2016 12:14 pm UTC| Insights & Views
Headwinds to global demand, coupled with lower oil prices and generally negative Emerging Markets sentiment are likely to keep pressure on the Mexican peso in 2016. Although MXN is somewhat cheap compared with its...
Growth outlook remains a concern in Taiwan
Jan 04, 2016 02:15 am UTC| Commentary
The trade and inflation data for Dec15 are due this week. Exports are expected to contract for the 11th month in a row, by -13% (YoY). CPI growth should stay marginally positive, at 0.3%. Global demand remains weak and the...
Deeper slump in South Korea's electronics exports accentuates drop in December shipments
Jan 04, 2016 01:12 am UTC| Commentary Economy
Exports fell by 13.8% y/y in December, much weaker than expected (consensus: -11.7%), following a one-time vessel delivery lift in November (Nov: -4.8% y/y; Oct: -16.0%). The release marked the weakest annual export...
MXN and BRL: Oil, inflation and politics to drive price action
Jan 04, 2016 00:33 am UTC| Commentary Politics
Although MXN is somewhat cheap compared with its long-term fair value, headwinds to global demand, coupled with the consequences of lower oil prices, justify the short-term undervaluation. The risks are tilted to further...
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