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FX market turbulence in August, led by sharp moves in emerging market currencies, has so far in September given way to more placid price action. The Dollar has weakened, Nordic and in particular high-yielding emerging market currencies have on the whole appreciated while Asian currencies have underperformed. Since 4th September, all major currencies, bar the Philippines Peso, Yen, Indian Rupee
Read moreIn One extreme to another: A price worth paying? (6 July 2018), I argued that in recent years it had been incumbent on governments to tackle the negative side-effects of central banks’ arguably extreme, post-financial crisis measures. Unsurprisingly perhaps heads of state have if anything become more vocal and prominent, with in particular US President Trump continuing to dominate headlines
Read moreDeveloped and emerging market central banks have started to “normalise” monetary policy, albeit at a slow pace. However, they have been largely powerless to deal with the negative side-effects of their arguably extreme, post-financial crisis measures. It has thus been incumbent in recent years on governments to tackle issues such as modest wage growth and income inequality, as well as
Read moreThe next eight days could prove pivotal for global markets. At the very least the G7 Leaders Summit (8-9 June) and meeting between Trump and Kim Jong un (12th June), Fed and ECB meetings and tier-1 macro data could set the tone near-term for currencies which in recent weeks have alternated between schizophrenic and composed. G7 Summits have in recent
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