Analysts at Rabobank suggest that while the severely battered Turkish lira – a major risk barometer for EM currencies these days – regained composure following its precipitous fall, a cautious approach to risky assets prevails as the USD continues to appreciate.
Key Quotes
“The DXY Index decisively broke above the June/July tops at 95.529/652. The June 2017 high at 97.871 is the next potential target for the USD bulls. If obtained the 100 level would be the next objective.”
“This bullish technical outlook for the DXY Index – underpinned by the ongoing widening in the interest rate differentials as the Fed continues to raise rates – will have consequences for central banks across emerging markets.”
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