Read our market review and find out all about our theme of the week in MyStratWeekly and its podcast with our experts Axel Botte, Aline Goupil-Raguénès and Zouhoure Bousbih.

Topic of the week: An overview of the FX market

  • The evolution of the dollar will depend on the risk of recession, inflation, the crisis of regional banks and the debt ceiling;
  • The euro seems vulnerable to an economic downturn, as well as a strong long positioning;
  • The weak yen gives Japan a competitive advantage;
  • The yuan should weaken to support Chinese exporters;
  • The real and the Mexican peso offer attractive carry;
  • Positive real rates should be the market mover for the FX market in this second part of the year.

Market review: Fed: status quo called into question?

  • Markets fully price a 25-bp Fed hike in July;
  • T-note yields hovering about 3.80%;
  • Profit-taking on equities expect for US Tech;
  • Stable credit spreads, sharp tightening in high yield.

Axel Botte's and Zouhoure Bousbih's podcast

  • Review of the week;
  • An overview of the foreign exchange market.

Chart of the week

msci-em-fx-index-and-used-cny-inverted

The Chinese yuan has massively underperformed  the MSCI EM Currency Index.

Since May, the dollar has strengthened sharply in the wake of rising US nominal interest rates.

However, the Chinese authorities seem to tolerate the recent depreciation of the yuan against the dollar if it remains gradual and orderly.

The weakness of the yuan also supports exporters who are suffering from the contraction in manufacturing activity at the global level and the weakness of the yen. 

Figure of the week

For the 1st time, the Earth's average surface temperature is likely to exceed pre-industrial temperatures by 1.5 degrees for at least one year before 2027.

MyStratWeekly : Market views and strategy

Download MyStratWeekly – May 30th 2023
  • Axel Botte

    Axel Botte

    Head of markets strategy

  • Zouhoure Bousbih

    Zouhoure Bousbih

    Emerging countries strategist

  • Aline Goupil-Raguénès

    Aline Goupil-Raguénès

    Developed countries strategist

Podcast
Reading time : 30 min.
NEWS MARKETS
Read our market review and find out all about our theme of the week in MyStratWeekly and its podcast with our experts Axel Botte, Aline Goupil-Raguénès and Zouhoure Bousbih.
06/11/2024
Reserved for pros
Reading time : 5 min.
INSIGHTS MARKETS
The ECB has started its rate cut cycle, but we do not expect rapid adjustments in the coming months. Yields should therefore remain attractive in the money market, which also offers low volatility and interest rate risk. Money market assets should therefore remain an important component of investors' asset allocation.To find out more about this interesting context, Fairouz Yahiaoui, Money market Portfolio Manager and Sanda Molotcov, Head of Credit Research at Ostrum AM share their views in this video.
06/07/2024
Reserved for pros
Podcast
Reading time : 30 min.
NEWS MARKETS
Read our market review and find out all about our theme of the week in MyStratWeekly and its podcast with our experts Axel Botte, Aline Goupil-Raguénès and Zouhoure Bousbih.
06/04/2024
Reserved for pros