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21 Feb 2014
Flash: EM jitters attracting FX attention - Danske Bank
FXStreet (Barcelona) - Jens Nærvig Pedersen, Analyst at Danske Bank notes that the EM jitters will continue to attract some attention in the FX market.
Key Quotes
“The Russian rouble has been under significant pressure this week, partly due to the situation in Ukraine. So far, the spill-over to other financial markets has been limited but if the situation in Ukraine continues to escalate, market jitters could spread to other central and east European markets.”
“Hence, it is not only the Russian rouble that will be under pressure: we have also seen some pressure on the Polish zloty, the Hungarian forint and the Romanian leu. Our EM economists currently see the biggest direct risk linked to the zloty if geopolitical turmoil escalates further.”
Key Quotes
“The Russian rouble has been under significant pressure this week, partly due to the situation in Ukraine. So far, the spill-over to other financial markets has been limited but if the situation in Ukraine continues to escalate, market jitters could spread to other central and east European markets.”
“Hence, it is not only the Russian rouble that will be under pressure: we have also seen some pressure on the Polish zloty, the Hungarian forint and the Romanian leu. Our EM economists currently see the biggest direct risk linked to the zloty if geopolitical turmoil escalates further.”