The reform of the currency is mainly symbolic In 2019, the West African Economic and Monetary Union (WAEMU1 ) initiated a shift from the CFA franc, the local currency, to a newly created currency – the eco. This marked the
Key takeaways The impact of the recent volatility has varied greatly within emerging markets, particularly between the investment grade and higher yielding parts of the asset class. This has been reflected in the differences in yields in local and hard
China has seemingly “flattened the curve.” The same cannot be said of the US.
CEE Forex News | CEE | FX After the first wave of the new coronavirus, FX markets in the region have calmed down. Things are far from being back to normal, however. Due to …
The EURUSD continued its sideways movement in April, although the range narrowed significantly. The outlook for both economic areas remains bleak and highly uncertain, both of which point to a sustained sideways trend. In this environment, long-term investments in either
It is always darkest before the down It has been an extraordinary four weeks in markets worldwide. In the past 20 trading sessions, the S&P 500 has seen more 3%+ daily swings than it had in the previous 5 years.
US dollar, Japanese yen, Swiss franc The EURUSD is currently extremely volatile. While the euro was able to make significant gains for the time being due to the sharply reduced interest rate differential between the US and the Eurozone, a
The core asset class views dashboard reflects the key views of the Investment Committee of the Multi-Asset team Despite investor scepticism, 2019 was a bull market for every asset class (Figure 1). Indeed, assets benefited from the strongly dovish stance
Eurozone in recession, CEE as well The spread of coronavirus to Europe and exponentially rising number of infected people forced the introduction of preventive measures to reduce its speed. CEE countries have done so at a relatively early stage, but
This week in CEE This week, the Hungarian central bank meeting is likely to be a key event. After the surge in the January inflation rate toward 4.7% y/y, the central bank verbally intervened by saying it will do whatever
Measured on a year-on-year percent change basis, M2 and M3 growth have both been accelerating in the US since late 2018. There are two main reasons why broad money growth acceleration has occurred, and in this article, we explain how
This week in CEE This week, a series of two equally important releases is scheduled: inflation and economic growth in the last quarter. Inflationary pressure remains elevated in the region, as in all countries the headline inflation number should land
Part 1: FX wars vs. currency wars USD vs. EUR vs. RMB vs. … The concept of “currency war” was officially coined by the Brazilian Finance Minister Guido Mantega in September 2010, a little less than 10 years ago. He considered that emerging
2019 market review and analysis In the market for corporate Schuldscheindarlehen, 2019 was one of the stronger years in terms of issuance, but failed – according to our calculations – to reach the record levels of 2016 and 2017: Around
USD: Euro should gain Over the past few weeks, EURUSD has been hovering in a relatively narrow range around 1.11. With a stable economy in the US and so far only modest indications of a recovery in the Eurozone,
Forex News – US dollar, Japanese yen, Swiss franc Over the past few weeks, the EURUSD has been hovering in a relatively narrow range around 1.11. With a stable economy in the US and so far only modest indications of a
As much as central banks drive bond markets, as little they drive currencies. At least in the short term. But in 2020 they are likely to drive little anyways. Even though central banks were once again among the most important
This week in CEE The CEE calendar is pretty empty of macro releases apart from Poland. There, we begin with data on the labor market, in particular employment and wage growth in December. Labor market conditions have been tight and not much
For most of November, the EURUSD remained in a very narrow range between 1.10 and 1.11. There was little reaction to the improvement in some economic data from the Eurozone. This was probably due to the approaching end of the
How much are investors spending on day-to-day FX management and how much could they save? The answer: much more than they may realise. The subject, typically viewed as an administrative backoffice function, often receives limited attention from pension fund trustees
November’s multi-asset chart of the month highlights how a global shortage of US dollars could be reversing. This could signal the beginning of a weak phase for the currency.
The UK’s deadline for leaving the European Union has once again been delayed and another general election is on the way in December, but what does this mean for the currency markets? Despite Boris Johnson’s best efforts to force his
LGT Beacon – Global macro and market review Despite the so-called trade war, China's CSI 300 has rallied almost 30% year-to-date and the S&P 500 is up about 15%. In-vestors, it seems, are learning to live with the intensifying great power
An October treat: strong equity rally as macro data are no worse than feared Trimming 2020E S&P 500 EPS from 173 USD to 170 USD, 4% growth Fed fully delivered on its "insurance" rate cuts: What from here? We are
House View October 2019 A prominent topic in the last month (aside from the ECB’s aggressive new monetary stimulus) was the sudden cash crunch in the repo market, i.e., the market for very short-term, typically overnight, lending. On Monday, September 16,
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