9 Jun 2013
Flash: Firmer USD expected post 1st wave of position adjustment - BBH
FXstreet.com (Barcelona) - The currency market has turned more traitorous than usual, says Marc Chandler, Global Head of Currency Strategy at BBH, on the basis that the low rates environment seen in the last few years may have its months numbered.
Marc thinks that while the period may take 3, 6 or even 9 months, "it is better to be early than late in adjusting positions accordingly." However, he suspects the first wave of the position adjustment is over and this may translate into a somewhat firmer dollar, better performing emerging market currencies and a recovery in equities in the days ahead.
"The dramatic moves last week seemed to have flushed out some of those who came to the party late" he added.
Marc thinks that while the period may take 3, 6 or even 9 months, "it is better to be early than late in adjusting positions accordingly." However, he suspects the first wave of the position adjustment is over and this may translate into a somewhat firmer dollar, better performing emerging market currencies and a recovery in equities in the days ahead.
"The dramatic moves last week seemed to have flushed out some of those who came to the party late" he added.