Investors escaping European weakness - BBH

By FXstreet.com | Updated August 12, 2014 AAA

FXStreet (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman figures that continued weakness in European data could further substantiate the asset rotation theory in global assets.



Key Quotes:



"I.e. away from the euro zone and towards the US and Emerging Markets. Anecdotal evidence suggests that this is one reason behind the underperformance of European stocks."



"Euro Stoxx 50, for example, is down 5.0% over the last three months, while the S&P 500 is up 2.1% and over 5.0% for the MSCI EM index. Moreover, expectations for a stronger dollar provide further impetus to this asset price rotation, just as much as the rotation reinforces the stronger dollar trend."



Related Forex Analysis
  1. Weekly Trading Forecast: Volatility Keeps Boiling in the FX Market
    Forex News

    Weekly Trading Forecast: Volatility Keeps Boiling in the FX Market

  2. Trading Video: Officials Trigger Volatility for Euro, Yen and Dollar
    Forex News

    Trading Video: Officials Trigger Volatility for Euro, Yen and Dollar

  3. Strategy Video: A Volatile Thanksgiving Week for FX?
    Forex News

    Strategy Video: A Volatile Thanksgiving Week for FX?

  4. US Session: The market left shell-shocked on Draghi
    Forex News

    US Session: The market left shell-shocked on Draghi

  5. EUR/USD back into the bears den, downside wide open
    Forex News

    EUR/USD back into the bears den, downside wide open

Trading Center