Three reasons supporting a strong euro

Posted on 12. Aug, 2013 by Jean Jacques Ohana in Weekly Focus

Even though the dollar has been strong vs. emerging currencies and commodity currencies, the euro, since the beginning of the year, has recently been even stronger than the dollar (figure 1). The consensual “bear euro” view has failed to materialize. This prediction, which is based on the premise that the euro depreciation would be the [...]

Some takeaways from the ongoing emerging meltdown

Posted on 05. Aug, 2013 by Jean Jacques Ohana in Weekly Focus

Since the FOMC hinted that it could reduce its assets purchase program, interest rates rose in the US and the dollar has been pushed higher vs. cyclical currencies and emerging currencies in particular.

As inferred by figure 1, emerging currencies play a key role in the emerging countries’ financial assets constellation as they are strongly correlated [...]