EM FX Carry Trade Update - March 31, 2020 - HUF in focus
Many EM currencies have bounced slightly from recent lows, but others are under renewed pressure even after a significant recent recovery in risk appetite. We focus special attention on CEE currencies in this editions, normally something we have not done in the past as there is really no notable carry available in these currencies, but the situation demands our attention.
FX Update: Eyes on risk proxies over quarter end
Our current risk proxy, the AUDUSD, drifted close to its ultimate local resistance overnight as risk sentiment saw a solid session yesterday and into early European trading today. Our interest in coming days is the degree to which quarter end provides a pivot in sentiment and then how eventual peak Covid19 in coming weeks is treated.
Market Quick Take - March 31, 2020
Markets put in a positive session yesterday and managed some stability overnight, though the major US average is still below a key pivot. Today marks the end of month and quarter, an interesting test of how much this recent bounce in equity markets is down to large portfolio rebalancing flows.