JPMorgan Chase Doubles Down on Emerging Market Currency Bet as US Dollar Continues Months-Long Slide: Report
Analysts at JPMorgan Chase are reportedly doubling down on rising market currencies because the US greenback struggles its means by means of 2025.
In an evaluation revealed final week, the monetary large’s strategists gave rising market currencies an chubby suggestion and predicted the market wouldn’t panic over the Israel/Iran battle, Bloomberg reports.
“The subsequent few days will likely be vital to this, however we’d assume there’s a larger bar for markets to panic.”
The advice is the other of what the funding financial institution’s strategists predicted earlier this 12 months. Following President Donald Trump’s “Liberation Day” on April 2nd, JPMorgan Chase supplied purchasers with a commerce concept that concerned flipping bearish on rising market currencies.
They later walked it again in a be aware in Might.
“Our UW (underweight) has not labored… We see adequate arguments that EM FX (overseas trade) won’t weaken versus the USD within the coming interval.”
Strategists on the financial institution reportedly anticipated that President Trump’s tariffs would put strain on overseas markets’ currencies, however didn’t predict that there would even be a shift away from US belongings, which weakened the greenback.
The US Dollar Index (DXY) is buying and selling at 98.22 at time of writing. The index is up 0.23% up to now day however down about 10% this 12 months.
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