According to Simon Murray, Research Analyst at Westpac, the formerly clear skies of the synchronised global uplift have become shrouded by concerns that the growth trajectory will become somewhat more bumpy. Key Quotes “Tariff drama dominates the headlines, European politics are again heated, and investors are fleeing from emerging market assets. Meanwhile, the US Federal Reserve continues to gradually normalise policy. Higher yields and reduced liquidity present a new paradigm and markets are still adjusting to tighter conditions.” “The first thing to note is that the pace of global growth already looks to have crested. Q1 GDP results show the distribution of growth in advanced economies has become increasingly bi-modal.” “Emerging economies generally posted solid economic results in Q1. However we are now seeing an unwind of yesteryear’s carry trade – borrowing cheaply in the US to invest in higher yielding markets. The result is a sharp depreciation of emerging market currencies and equity weakness, particularly for those countries with current account and fiscal deficits.” “Needless to say, an escalation in the ongoing trade saga also lingers as a significant risk to global activity.” “In addition to the trade situation, Europe is facing internal political disputes. The new Italian far-left and far-right governing coalition is pushing towards wider fiscal deficits and a greater aversion to the Euro currency. In addition, migration is back as a contentious issue. While last week’s EU summit ended with a deal, detail is scarce.” “Markets are justifiably sensitive to these recent dynamics. Large moves have generally been contained to specific countries but an overall risk-off sentiment pervades.” “In the same respect, we note that downside risks are accumulating with the branches of future scenarios growing thicker, wider and more lop-sided.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next NEO price analysis: NEO/USD stays above long-term trendline; community raises red flags about Bitpaction exchange FX Street 4 years According to Simon Murray, Research Analyst at Westpac, the formerly clear skies of the synchronised global uplift have become shrouded by concerns that the growth trajectory will become somewhat more bumpy. Key Quotes "Tariff drama dominates the headlines, European politics are again heated, and investors are fleeing from emerging market assets. Meanwhile, the US Federal Reserve continues to gradually normalise policy. Higher yields and reduced liquidity present a new paradigm and markets are still adjusting to tighter conditions." "The first thing to note is that the pace of global growth already looks to have crested. Q1 GDP results show the… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.