The FX winners and losers as 'underlying dynamics' change

Neil Staines, head of trading for the ECU Group, assesses the impact of recent global policies on currency markets.

In a report for the leaders of the G20, the IMF suggested it was the developed economies that were once again turning into "global growth engines". This was after a long period of contraction when most (if not all) of the global growth contribution came from the emerging world. While we have been sceptical of the official levels of growth from the Chinese economy in the first half of this year, we are currently of the opinion the credit issues and (managed?) economic slowdown in Q2 have been countered by a bounce in the developed world and internal stimulus in China. For the rest of this...