The FED’s dovish shift has significantly reduced downside pressure on the euro in recent months and mounting political pressure to ease suggests a neutral outlook for EURUSD. Over the longer term the euro should see slight upside pressure as its stronger fiscal position keeps inflation relatively anchored. Short-Term / Tactical Outlook: Euro No…
USD/KRW Forecast: Short-Term Won Weakness Ahead of Long-Term Appreciation Short-term won weakness likely as dollar benefits from rising real interest rate spreads. Sronger growth and lower inflation combined with slight currency undervaluation should see won appreciation long term. Short-Term / Tactical Outlook: Won at Risk from Rising Real Yield Spreads The US dollar…
Further devaluations likely in the near term regardless of whether an IMF agreement is forthcoming. Longer term, further rupee depreciation lies ahead but huge interest rate differential should more than offset the declines. Short-Term / Tactical Outlook: Reserve Gain Belies Increased External Fragility The uptrend in USDPKR in place since the SBP devalued…