Insight's Thomas: global cycle is good for euro and EM currencies

MACROECONOMIC FOCUS

Insight's head of currency, Dale Thomas, on how global conditions could drive currency movements

With another country seemingly announcing every week that it wishes to have a weaker currency to help boost its recovery prospects, investors could be forgiven for thinking that there are strong reasons for betting against all of the world's major currencies. Yet it is important to remember the value of currencies can only be expressed in terms of each other, and as such investors still have the potential to generate absolute returns by weighing up the relative merits of one currency over another. We believe the global cycle should pick up momentum from now onwards. This should create...