We expect the Australian Dollar to remain under downward pressure as domestic fundamentals rather than trade war issues will influence the currency into 2020. Recently, the AUD has risen in value driven by the most recent Federal Reserve interest rate cut, better sentiment towards U.S.-China trade negotiations and progress on Brexit. However, the currency has…

Although China’s offshore yuan strengthen past 7 per $USD on expectation that phase one of the trade deal will be signed soon, we still see the yuan remaining vulnerable to further weakness as discussions between U.S. and China drag on. Given the history of previous trade agreement setbacks, continued weakness in China’s economy given we…

Price of palladium falls 1.75% and is below the $1400 level but is still more valuable than gold which it overtook for the first time in 16 years in early December. Palladium’s bull-run is due to demand outstripping supply as the metal is mainly used for catalytic converters in petrol-powered motor vehicles. Furthermore, with European…

Although the British pound is above $1.30, unless you can afford to ride the wild swings in the currency, we would advise taking up a position given continued uncertainty over Brexit. We also extend this recommendation to UK equities and gilts. We note the pound is undervalued against the dollar due to Brexit noise with…

With the US midterm elections over and the results broadly expected, attention turns to how the US economy will perform with a split Congress and what the Federal Reserve will do next. It is unlikely President Trump will be able to implement a second round of tax cuts in 2019. Instead, focus may shift to…

The Australian dollar has fallen 11% since January. We still see AUD falling to 69c in the short-term on trade tensions and higher U.S. interest rates but longer-term, we expect AUDUSD to head back towards 80c. Key factors we see supporting AUD is the additional stimulus coming from China’s policymakers, firmer commodity prices and the…

The pound fell more than 1% after UK Prime Minster Theresa May stated Brexit negotiations were at an impasse and reiterated that no deal was better than a bad deal. The pound was already down against the Euro and dollar after the disastrous outcome of the Salzburg summit where EU leaders stated it wasn’t happy…

The rupee is one of the world’s worst performing currencies of 2018; down 13% against the dollar since the beginning of the year affected by political and economic headwinds that is also pushing the stock market lower leading to capital outflows. There are definite reasons for the rupee falling; including rising oil prices, a widening…

Turkey’s Central Bank has finally made a long overdue raise in interest rates by 300 basis points as it attempts to rescue its plummeting national currency, which has fallen 20% against the U.S. Dollar this year. Although the Turkish Deputy Prime Minister attempted to allay fears that the country would not step-back from a rules-based…

The Taiwan is continuing is surge against the U.S. Dollar to reach levels not seen since 2014. Equity inflows and comments from the country’s central bank have helped drive Taiwan’s Dollar up. The TWD advanced 8% last year which represents a problem for Taiwan’s exporters as a stronger currency decreases a company’s profits through foreign…

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