Fragile EMs help JPY-bears repeatedly

The stocks and high yielding currencies of EM/resource countries (risk currencies) tend to rally when monetary easing stimulates global economic recovery. Strong risk currencies can have a bull cycle of fundamental factors. In other words, even under relatively high interest rates, if growth outlooks are promising, foreign money inflows (and commodity export incomes) cover C/A deficits and higher currency curbs inflation.

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