FXStreet (Guatemala) - Analysts at Bank of America Merrill Lynch explained that the low volatility environment largely persists despite geopolitical tremors.



Key Quotes:



“The Russia/Ukraine conflict remains on the radar screen as violence continues and the US and Europe increase sanctions against Russia."



"The Israel/Gaza conflict continues to make headlines and add to global geopolitical turmoil. Conversely, China appears as a bright spot on the EM and global horizons as ongoing policy stimulus supports the government's 7.5% growth target."



"Against this backdrop, most EM assets have continued to grind higher, with equities leading the way in July. Equities, local debt, external debt, and FX returned 2.7%, 0.7% 0.6%, and -0.2%, respectively, in July. However, our GEMs Fixed Income and FX Sentiment Survey shows that investors are still cautious, as real money cash levels remain at close to average levels while hedge funds are either maintaining or lowering their VAR levels.



You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    Events day ahead, FOMC key event - Westpac

  2. Forex News

    EUR/USD Technical Analysis: Breakout Intact After Pullback

  3. Forex News

    EUR/USD: 1.1120 needs to give or else bearish - FXStreet

  4. Forex News

    EUR/USD Rips into Resistance; Just Shy of July Open

  5. Forex News

    Greece needs conditions for sustained growth - BBH

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!