- Analytics
- News and Tools
- Market News
- The relative view not looking as good for the Euro and Sterling as it used to – BBH
The relative view not looking as good for the Euro and Sterling as it used to – BBH
In FX, it is all about the relative view, economists at Brown Brothers Harriman & Co. report.
Ongoing Dollar weakness viewed as being at odds with the underlying fundamental story
Relative interest rate differentials and reIative growth rates are the two most important ones for the market. We believe both still favor the Dollar but it has suffered from a massive drop in the two-year yield even as markets embrace the soft landing scenario.
In keeping with the relative view, if one is negative on the Dollar, one must be positive on another currency. The Euro and Sterling are two of the top three performing majors year to date. Yet we are beginning to see larger cracks form in these two currencies as well as in the rest of the world.
This week, comments from two leading ECB hawks suggest the tightening cycle may end sooner than expected. In the UK, stubbornly high inflation is likely to lead to an aggressive BoE tightening cycle that tips the economy into a deep recession. To us, the relative view doesn’t look as good for the Euro and Sterling as it used to.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
