Global risk factors remain elevated - AmpGFX

Global risk factors remain elevated which include rising US rates and pockets of stress in emerging markets, tough US trade policy towards China with a further expansion of tariffs still planned,  and Italian government debt spreads are elevated, points out Greg Gibbs, Analyst at 
Amplifying Global FX Capital Pty Ltd.

Key Quotes

“However, riskier asset markets have recovered significantly in the last two weeks in most parts of the world from lows triggered by the collapse in Turkish assets in mid-August.”

“USD rates have been rising again recently, but it appears that the market is trying to look beyond the peak in US rates again and seeing reasons to expand its portfolio beyond the USD and US assets.”

“The USD has fallen significantly against many major and emerging currencies in the last two weeks.  However, some of the weaker EM currencies remains depressed. New lows have been reached by the ARS and BRL, gains in the MXN have stalled, despite the US-Mexico trade agreement announced on Monday.  The RUB, INR, IDR and MYR also remain near remain near recent lows.”