Synthetic FX View–Macro and Prices

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An escalation of threatening rhetoric by the United States and North Korea emerged as the key driver last week.  The US was unable to build on the success it enjoyed at the UN on August 5 when the Security Council unanimously voted to impose the stiffest sanctions to date on North Korea.  Even if President Trump’s “fire and fury” threat was more visceral than strategic initially, there have been several opportunities to backtrack, and instead, the administration seemed to double down. Continue reading

What Has Changed in EM


  • Tensions on the Korean peninsula are still rising
  • Hong Kong boosted its 2017 growth forecast
  • S&P affirmed Israel’s A+ rating but moved the outlook from stable to positive
  • The corruption investigation against Israeli Prime Minister Netanyahu has intensified
  • South Africa’s parliament voted down the no confidence motion against President Zuma
  • Argentina officials are taking steps to support the peso
  • Banco de Mexico has ended its tightening cycle  Continue reading