source: Standard Chartered
"In G10 currencies, we continue to recommend Underweight FX allocations in the EUR. We are Neutral on the JPY and GBP, reflecting our expectation that both EUR-GBP and EUR-JPY will remain under pressure near-term. Commodity currencies may receive support eventually from China adopting a more pro-growth strategy, but near-term will remain weighed down by risk aversion. Moreover, we expect China’s data to remain weak for the rest of Q2. In AXJ, we stress a bias for lower-beta currencies in balanced FX portfolios, such as the Chinese yuan (CNY), Singapore dollar (SGD) and Hong Kong dollar (HKD)." Callum Henderson, global head of FX research at Standard Chartered.
"In G10 currencies, we continue to recommend Underweight FX allocations in the EUR. We are Neutral on the JPY and GBP, reflecting our expectation that both EUR-GBP and EUR-JPY will remain under pressure near-term. Commodity currencies may receive support eventually from China adopting a more pro-growth strategy, but near-term will remain weighed down by risk aversion. Moreover, we expect China’s data to remain weak for the rest of Q2. In AXJ, we stress a bias for lower-beta currencies in balanced FX portfolios, such as the Chinese yuan (CNY), Singapore dollar (SGD) and Hong Kong dollar (HKD)." Callum Henderson, global head of FX research at Standard Chartered.
