Overall, the Fed’s latest Beige Book provided a pessimistic assessment of the US economy. Although the report characterized tourism spending as “stronger than expected,” it also noted that pent-up demand for…
Earlier this year, our Emerging Markets strategists highlighted that the divergence between Latin American and Emerging Asian currencies was unsustainable. While Latam currencies – including the COP, MXN, BRL, PEN, and CLP…
According to BCA Research’s Foreign Exchange Strategy service, the counter-trend bounce in the dollar will continue. Factually, the trend in the dollar has depended on both global growth dynamics and the relative health…
In this week’s report, we assess the key reasons why the dollar has risen, and if that is set to continue.
The Chinese yuan fell to its lowest in nearly 16 years vis-à-vis the US dollar on Thursday following the release of Chinese trade data. Although the pace of export contraction slowed from 14.5% to 8.8% y/y in August (and…
Strategists arguing for an end of the outperformance of US equities over international stocks have pointed to the lofty valuations of American stocks vis-à-vis their global counterparts. Moreover, they have highlighted…
Since the beginning of the year, our equally-weighted global cyclicals index has outperformed equally-weighted defensives by about 13%. As the chart above shows, this relative performance trend has been extremely positively…
According to BCA Research’s Global Investment Strategy service, the structural bull case for carbon credits remains compelling. However, tactical investors should brace for prices to plateau or even correct over the next 12…
If we look at global growth as an aircraft, the plane is experiencing failing engines and will lose more altitude in the coming months. Yet, neither Chinese authorities, nor the Fed or the ECB will be quick to come to the rescue as…
The US ISM delivered a positive signal about service sector activity in August. The headline index unexpectedly jumped by 1.8 points to a six-month high of 54.5, surprising expectations of a 0.2-point decline to 52.5. Importantly…