| Chinese Yuan vs.
EUR, USD & JPY |
- There has been a growing divergence between the falling equity markets
and the lagged response of Asian FX lately. The key concern is whether
Asian currencies will catch up with falling equities. At a superficial
level, this equity:FX correlation is being driven by international portfolio
equity flows. However, the ultimate drivers for these flows are expectations
for the global growth cycle and how these may impact export and corporate earnings in the future.
(Morgan Markets)
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