By Chris Turner, Global Head of Strategy and Head of EMEA and LATAM Research
Despite some promising news on a ‘phase one’ US-China trade deal, pro-cyclical currencies are struggling to reclaim some of the heavy losses seen since May. We think it is too early to chase recovery stories and stay cautious on risk currencies this quarter.
Limited positives
Those currencies most exposed to the US-China trade war - or the pro-cyclical currencies representing open economies with exposure to the global industrial cycle - have enjoyed a rally over recent days on news that