In the text "Will the US dollar continue to weaken?" by Capital Group, the main theme revolves around the uncertainty of the US dollar's future and the factors that may influence its direction. The decade-long bull run of the greenback
Jared Franz, for example, says the Fed will keep rates higher for longer, yet when the economy recovers, it will be stronger than prior rebounds. Meanwhile, Robert Lind argues that European policymakers will likely run looser fiscal policies and tolerate
We believe the US dollar is expensive and starting to run on empty. Looking ahead to when the dollar weakens, we expect it to provide a ceteris paribus boost to commodities, emerging market assets and …
A rapid shift in the outlook for the global economy – punctuated by soaring inflation, Europe’s deepening woes and increasing fears of a worldwide recession – is having an enormous impact on currency markets. The US dollar has continued to climb
How to Calculate ROIC and Handle Common Issues A company creates value when the present value of the cash flows from its investments are greater than the cost of the investments. In other words, one dollar invested in the business
Starting in 2003, Michael Dooley published a series of papers proposing the idea of a Bretton Woods revival as the plausible rationale for China’s relatively extreme foreign currency reserve accumulation policy.
Asset Allocation Monthly: During August, investor edginess increased. Financial markets partly reflected this with a decline in equities and commodities, a fall in long-term bond yields, and a rise in the US dollar. Expectations about the US Federal Reserve’s monetary
As emerging markets matured over the last couple decades, many countries began issuing debt, denominated in their respective local currency, rather than US dollars. This has created a valuable sub-asset class worth more than 3 trillion US dollars, alongside US
Aggressive stimulus and labor market tightening mean higher inflation risk. Asset and commodity prices have been moving in line with the view that supply constraints and a weaker U.S. dollar are putting incipient pressure on underlying inflation trends. Contrary to
December 2020 Emerging-market debt (EMD) continued to benefit from a broad market rally in the third quarter of 2020, with local-currency sovereign EMD, hard-currency sovereign and corporate credit all posting positive returns. We hold a higher conviction for currencies, as
T. Rowe Price Insights on Global Fixed Income With investors struggling to find much‑needed yield for their portfolios, we believe a strong opportunity remains within emerging market (EM) local bonds. The yields on offer from a number of EM local
Investment Insights Is the U.S. dollar entering a new multiyear bear cycle, or is it just experiencing an episode of weakness in an already decade-long bull run? It’s a question at the top of investors’ minds given the dollar’s steady
The Weekly Brief Since the U.S. presidential election on November 3 th, the USD has started a descent that may have legs under the new administration. The easing of trade tensions and an accommodative policy mix could put additional pressure
The financial panic caused by Covid-19 and the halt in the global economy have been brought under control thanks to budget plans and monetary action by central banks. Having seen the dollar plummet at the height of the crisis, accelerated
Aerial View Over the past 20 years, academics, policymakers and market participants have begun to debate the future of the US dollar (USD) as the world’s premier reserve currency, or the currency in which global …
Miners Remain Undervalued Despite Gold’s Run The strong gains of July carried on to early August. Gold reached an all-time high of $2,070 per ounce on 6 August amid U.S. dollar weakness and new lows in treasury yields. Gold then
The gold bull market passed two important sign-posts in July. The strength of the market is impressive as it blew through $1,800 and the all-time high of $1,921. These prices had been major technical resistance points set a decade ago.
Weekly commentary A prolonged period of U.S. dollar gains has reversed abruptly. The policy revolution to cushion the pandemic’s blow is a key driver, as it has eroded the dollar’s interest rate advantage and helped lift risk appetite off its
We are cautious about the oil price after its rapid recovery. A weaker dollar, low real interest rates and higher inflation expectations are likely to support gold. We reaffirm our belief that China will meet the requirements of the phase-one
Forex News US dollar, Japanese yen, Swiss franc The euro has recently gained some ground and for the first time since the end of March, it reached values above USD 1.10. Fundamentally, there is some justification for this move, as
China has seemingly “flattened the curve.” The same cannot be said of the US.
Investment perspective and market outlook 10 (mostly new) predictions for 2020: A light at the end of a very long tunnel The coronavirus pandemic and the resulting countermeasures have changed everything. Outside of widespread war, the world has never witnessed
U.S. dollar underpins EM assets We see the U.S. dollar stabilizing or weakening in 2020 after a long run–up, supporting our preference for emerging market (EM) assets. We see global growth stabilizing and gradually edging up over the next six
Dear Reader, Following the shock caused by near-20% declines during the fourth quarter of 2018, global equity markets rebounded strongly in early 2019 as the US Federal Reserve brought its rate hikes to an end in the first quarter before
Market outlook • Investors entered autumn with great anxiety about the trade war and Brexit. Those risks have abated, and so have flight-to-quality flows. • Headline risk into yearend includes trade war news (US, China, EU) and US employment data.
The currency has remained resilient despite the slowing U.S. economy Interest rate cuts are usually associated with currency depreciation, but this is not always the case with the U.S. dollar. A key factor in determining the value of the dollar
With the further escalation of the trade war between the US and China in August and a British government that has set its course for a hard Brexit, market concerns have generally increased. So far, the EURUSD has reacted relatively
Invesco Fixed Income Investment Insights Key takeaways – The Asian US dollar bond market has grown rapidly in recent years, bolstered by strong Asian demand for bonds of regional issuers. – China's share of the Asian US dollar bond market
Institutionele partijen beleggen een deel van hun portefeuille buiten de eurozone. Hierdoor lopen ze valutarisico. Dit valutarisico dekken beleggers meestal grotendeels af. Achmea IM adviseert 100% van het valutarisico binnen vastrentende waarden af te dekken en doorgaans 75% binnen aandelen.
UBS House View The quest for yield in a low interest rate world led many investors to overload on concentrated credit risk. Since defaults rise as the cycle matures, we recommend rebalancing toward higherquality, longer-duration bonds, and diversifying credit exposure
