Market sentiment towards the Chinese currency has shifted significantly
EURUSD should be rangebound
Our view over the past few quarters has been that EURUSD should be rangebound, as the cyclical outperformance of the US economy is offset by the eurozone’s relatively better balance of payments position.
We enter the second quarter with a constructive view on emerging markets debt (EMD). In our view, the combination of a dovish Federal Reserve (Fed)*, Chinese stimulus and a stable servicing backdrop should lead to a stable returns profile