Strategy Report

Grungy Times - A Replay Of The Early 1990s?

10 Jun 2016

by Mathieu Savary, Chief Strategist, Developed Markets ex US & Head of Research Innovation

The 1990s mid-cycle slowdown is an appropriate analogue to current market conditions. A lower dollar was the key ingredient the easing in monetary conditions that resolved this episode. This suggests that today, as the sole economic lever left, the greenback has further downside. Go short USD/SEK. Go long a basket of NOK, CAD, AUD and NZD against the USD.

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