CEW News and Press, WisdomTree Emerging Currency Strategy Fund From 02/21/23

Summary The dollar is broadly stronger. Sterling is a notable exception after a stronger-than-expected flash PMI and better-than-expected public finances. A slightly-better-than-expected preliminary PMI and hawkish minutes from the recent RBA meeting has done little to support the Austr...

Summary Two key risks could challenge recent market optimism: weaker consumption and a squeeze on corporate profitability. Despite these elevated risks, current credit spreads are not reflective of recessionary risks when compared with historical levels. The opportunity set for inco...

Summary The greenback is extending its recovery today against all the major currencies, with the Australian and New Zealand dollars hit the hardest. Emerging market currencies have also been knocked back. The euro has fallen to $1.0630 today. Nearby support is seen around $1.0615, b...

Summary The dollar is mostly softer, but mostly +/- 0.15%. The yen is the weakest of the G10 currencies. Most emerging market currencies are softer. Despite the yen's pullback, Japanese stocks were sold, with the Nikkei off almost 0.9%. Meanwhile, Europe's STOXX 600 has recouped...

Summary Equities and bonds rallied in January, clawing back some losses from last year. The reopening of supply chains and the still strong labor markets have seen the pendulum of sentiment push away from the pessimism seen in the waning months of 2022. Weaker energy prices lower th...

Summary EM could be fairly characterized as having low debt and market-based yields, in contrast to higher-indebted and lower-yielding DM countries. EM’s improved fundamentals deserve a special focus as regards net external creditor status. EM is filled with net external creditor...

Summary Despite softer economic conditions globally, emerging markets (EM) credit fundamentals remain supportive—and while we see some pockets of weakness, especially among energy- and food-importing countries, overall we believe EM debt is well positioned to withstand a period of we...

Summary A combination of month-end adjustments and positioning ahead of the outcome of tomorrow's FOMC meeting has taken the shine off equities and has helped lift the dollar. Despite repeated attempts, the euro was unable to establish a foothold above $1.09 and was sold back to around ...

Summary The impact on EMs of more meaningful U.S. growth (and inflation) slowdown in 2H23 could be mitigated by better behavior from the rest of the world, leading to a further moderation in both the USD and interest rates. If, as we believe, this U.S. slowdown is not too harsh, paradox...

Summary The two key risks of fixed income are interest-rate risk and credit risk. Duration and high yield are often negatively correlated. We like the secured nature of securitized bonds. By Matthew Sheridan, CFA Transcript When we think about gener...