Risk of trade wars looms over CEEMEAs - Rabobank

The CEEMEA currencies have steaded on the back of the prospect of an unprecedented meeting between US President Trump and North Korean leader Kim Jong Un, notes the research team at Rabobank.

Key Quotes

“We are not witnessing an outburst of optimism as it remains to be seen whether North Korea will take concrete steps towards denuclearisation.”

“Relatively muted market reaction also comes from the fact that the risk of full-scale trade wars prevails as President Trump went ahead with signining controversial tariffs on steel and aluminium.”

“With the US and the EU on a path that could lead to a trade war, the CEE currencies are looking vulnerable with the Czech koruna underperforming its peers over the past few days.”