Emerging Markets – Forex by Lloyds TSB

The brazilian stock market continues to perform well globally. Hence the BRL continues to be the favoured currency to lead a recovery in emerging market currencies.

Latin America and Central America:

The brazilian stock market continues to perform well globally. Hence the BRL continues to be the favoured currency to lead a recovery in emerging market currencies. From a short term perspective the rebound in equities is having traction and the possible bases forming in soft commodities makes the risk reward look more attractiveparticularly in the context of currency declines and compared to core bond yield returns. The CLP is also worth
watching as copper attempts to base build.

Asia/Asean:

The CNY continues to strengthen against a weaker yen but remains locked against the dollar. Whilst it seems unlikely to break this range short term, the bigger picture outlook favours CNY strength. A sharp reversal in the KRW should have further momentum although the SGD is the favoured currency regionally and should strengthen
against the THB. The INR remains under pressure and risks further weakness after a short term corrective phase.

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