A daily EM FX commentary noting a shift to softer risk sentiment driven by US-Iran strikes and tariff threats, with specific focus on CZK outperformance and USDILS volatility.
Key Takeaways
- 1.EM risk sentiment is weakening due to escalating US-Iran hostilities and renewed tariff threats.
- 2.The Czech Koruna (CZK) is outperforming peers based on rising expectations for a central bank rate hike in June.
- 3.Dovish commentary from Bank of Israel Governor Yaron has triggered a sharp rally in USD/ILS.
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Authors
Laoise Ni Thighearnaigh
Securities
USDZARUSDTRYEURCZKUSDILS
Themes
Geopolitical De-escalation as EM CatalystCentral Bank Policy Divergence
Regions
Middle EastEuropeAfricaSouth AfricaTurkeyPoland