According to BCA Research’s Emerging Markets Strategy service, the Indian rupee is about 7% cheaper than its fair value versus the US dollar. The concept of purchasing power parity (PPP) theorizes that the currency of an…
Highlights The Indian rupee is about 7% cheaper than its fair value versus the US dollar. Expanding capital expenditures will boost India’s productivity and raise returns on capital. That will attract higher capital inflows,…
Highlights Tactically downgrade cyclical equities from overweight in Europe. The shift in global growth drivers, the beginning of the global liquidity withdrawal, and lingering COVID worries create headwinds for the cyclicals-to-…
The Brazilian real was up 1.4% versus the dollar on Thursday – a day of broad dollar strength. The gain comes on the back of the Central Bank of Brazil’s decision to hike rates by 75 bps for the third consecutive time…
The yen has been the worst-performing currency in the developed FX space this year. Unlike the euro area or the US, the Japanese economy remains under siege from the pandemic. The number of new COVID-19 cases is at the highest…
Emerging Markets Strategy has been recommending that investors position for a dollar rebound and believes the dollar’s move will be playable: it will be meaningful and last a few months. US dollar strength will be driven by…
Highlights The yen is the most underappreciated currency in developed markets today. Our bullish thesis on the yen rests on a simple pillar: Japan will successfully overcome the pandemic like its Western counterparts. This good news…
Highlights Geopolitical risk is trickling back into financial markets. China’s fiscal-and-credit impulse collapsed again. The Global Economic Policy Uncertainty Index is ticking back up after the sharp drop from 2020. All of our…
According to BCA Research’s Counterpoint service, the Canadian Dollar is set to weaken as the inflation bubble bursts. What caused the inflation bubble? The answer is that as industries reconfigured for the end of…