EM structural strength in focus as dollar rallies, CIBC

But dollar gains could soon lose steam

argentina-flag
Currencies such as the Argentine peso fell against the dollar in recent weeks

CLICK HERE TO DOWNLOAD THE PDF

Investors will look to trade emerging markets on the basis of relative structural strength, as the combination of a stronger dollar and higher US bond yields is making some developing economies comparatively less attractive, says Jeremy Stretch, head of G10 FX strategy at CIBC Capital Markets.

When Treasury yields increase, investors pull funds away from risky asset such as EMs and pump them into safer bets like government bonds. Higher yields also increase borro

To continue reading...

You need to sign in to use this feature. If you don’t have a FX Week account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: