EM currencies gain ground on weak USD

17 December, 2018

Emerging market currencies have entered the final full trading week before Christmas on a positive note despite fears over plateauing global economic growth weighing on risk sentiment.

It is becoming clear that a weakening Dollar remains the primary driver behind the impressive gains witnessed in the EM FX space. With the Dollar seen depreciating ahead of the Fed meeting as investors remain on the side-lines, emerging market currencies have the opportunity to extend gains. However, geopolitical risk factors in the form of lingering trade tensions, Brexit related uncertainty and political risk in France are seen fuelling risk aversion down the road. If the Dollar ends up benefiting from the risk-off mood and appetite for risk sours further, EM currencies will most likely be one of the many casualties.

The Chinese Yuan stood its ground against the Dollar as investors positioned ahead of key policy events in China this week. China will be celebrating the 40th anniversary of reforms and opening up on Tuesday while the nation’s annual Central Economic Working Conference will be in focus later this week. It could be an eventful week for the Yuan if the local currency is influenced by these key policy events and lingering trade concerns.

Focusing on the technical picture, the USDCNY is trading marginally below the psychological 6.90 resistance level as of writing. A solid breakout above this point has the potential to trigger an incline towards 6.93.


Source link  
Risk sentiment hit by IMF pessimism

A wave of risk aversion swept across financial markets today with global equities retreating as pessimism over global growth sapped risk sentiment...

Markets take a U-turn after disappointing

After a positive start to the week, Asian equities fell today amid rising concerns over the global economic outlook. The market is currently being...

EM currencies mixed despite optimism

The mood across financial markets was mixed this week as investors tussled with Brexit drama, US-China trade developments and a partial...


China stimulus extends correction

A solid kick off for the U.S. earnings season, Theresa May surviving a vote of no-confidence, China's central bank pumping record liquidity, and policymaker assurances...

Rally losing momentum

Investors have kicked off 2019 in a positive mindset. The S&P 500 rallied during 5 out of the past 6 trading days booking 3.1% gains so far...

Equities recover on trade optimism

After a terrible end to 2018 which saw global equities plummet, markets are finally seeing the color green returning to their screens. U.S. stocks built...


Optimism creates illusion of stability

The first trading week of 2019 has been explosively volatile and highly unpredictable due to persistent concerns over slowing global economic growth...

Stock markets resume rollercoaster ride

The final trading week of 2018 has been explosively volatile and wildly unpredictable due to geopolitical risks. Global sentiment repeatedly...

Risk-off sentiment intensifies

It has been a painfully bearish trading week for global equity markets as fears over slowing global growth weighed heavily on investor sentiment.


In the past 24 hours Bitcoin has lost -0.05% and reached $3604.15888626. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has gained 1.5351% and is now at $1.1563. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -4.78% and is now at $118.194316232. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Forex Market Analysis



Forex Currencies Forecasts



Top 10 Forex Brokers 2019

# Broker Review
1easyMarketseasyMarkets91%
2FXTMFXTM87%
3HYCMHYCM86%
4FxProFxPro84%
5FIBO GroupFIBO Group83%
6OctaFXOctaFX82%
7HotForexHotForex81%
8FXCMFXCM80%
9XMXM72%
10FP MarketsFP Markets69%
  


Share: