This year, the sterling has hit a two-year high versus the dollar, the yen is expected to weaken further, and the slowdown in China is expected to impact Australian and Canadian currencies too. Investment Week asks managers about their currency strategy amongst the 2014 turmoil.
Adam Cordery head of European FI, Santander Asset Management Euro vs dollar Eurozone bonds could do well in the near term, because the euro could be attractive against the dollar and emerging market currencies. What will drive demand for the euro? Fundamentals, flows and changing fashions. The fundamentals point to growing interest in the euro. The eurozone’s problems are not solved, but the gap between growth in the eurozone and the rest of the world seems to be narrowing. The flow effect is powerful and simple. The eurozone has a current account surplus, the US has a defici...
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