24 Jan 2014
Flash: Argy Bargy in Emerging Markets - Danske Bank
FXstreet.com (Barcelona) - Danske Bank strategists note that on Thursday the Argentine central bank in a surprise move allowed the Argentine peso to initially drop 13% on the day and speculation is increasing that the central bank is very close to having run out of foreign currency reserves.
Key Quotes
“The ongoing demonstrations in the Ukraine turned violent this week and the situation is becoming increasingly volatile.”
“Furthermore, we have also seen large demonstrations in Thailand. In fact, it seems that political uncertainty has been rising in a number of Emerging Markets. Other than Ukraine and Thailand, Turkey is obviously also a concern.”
“The renewed sell-off in Emerging Markets has contributed to a flight-to-safety in the global currencies, which has benefitted traditional safe-haven currencies such as the dollar and the yen.”
Key Quotes
“The ongoing demonstrations in the Ukraine turned violent this week and the situation is becoming increasingly volatile.”
“Furthermore, we have also seen large demonstrations in Thailand. In fact, it seems that political uncertainty has been rising in a number of Emerging Markets. Other than Ukraine and Thailand, Turkey is obviously also a concern.”
“The renewed sell-off in Emerging Markets has contributed to a flight-to-safety in the global currencies, which has benefitted traditional safe-haven currencies such as the dollar and the yen.”