The USD Week: Bias is Bearish
Wed's FOMC decision is a key event risk. The Citi US economic surprise index stands at +236.2 and so V-shaped economic rebound hopes are high. Markets are functioning overall better and longer-dated yields remain at low levels and so the Fed is widely expected to leave the Fed funds target rate at 0-0.25%, with no change to QE either.
Euro SSA Snapshot: SSAs Buck Slowdown in a Momentous Week For Europe
The euro SSA market defied the broader slowdown experienced by other asset classes last week with total supply rising to EUR6.175bn, accounting for over 72% of the week's overall supply.
Emerging Markets: CLP May Lose Out During Rest of The Year as Political Risk Increases
The Chilean Peso has been Latin America's best-performing currency this year, but is still softer vs the USD, down 4.5%, although this pales in comparison to the 24.5% drop in the BRL. Amid the peak of the Covid-19 pandemic and lockdown, the CLP's losses peaked at ca. 15% vs the USD.