Rate divergence: Fund managers reveal their currency plays

Fund managers reveal currency plays

clock • 12 min read

Investment Week asks managers how they are dealing with volatile currency markets, as diverging central bank monetary policies create fresh challenges for investors.

Stewart Cowley portfolio manager, Old Mutual Global Strategic Bond fund Being Cautious Everyone appears to be bullish on the dollar which is worrying. Much of this is based on the idea the Federal Reserve will raise rates this year. I do not think there is a strong case for it: there is not an established credit cycle in the US. Currency models have not been useful since the crisis hit but, on an old school interest differential basis, sterling is almost exactly where it should be against the dollar: a reason for caution. The euro is slightly undervalued. In order to move to ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Global

Moody's downgrades China sovereign credit outlook to negative

Moody's downgrades China sovereign credit outlook to negative

Retains A1 rating

Elliot Gulliver-Needham
clock 05 December 2023 • 2 min read
ECB warns high rates are pushing economy towards fragility

ECB warns high rates are pushing economy towards fragility

‘Early signs of stress’ in banks

Elliot Gulliver-Needham
clock 22 November 2023 • 2 min read
Global dividends fall 0.9% as big companies slash payouts

Global dividends fall 0.9% as big companies slash payouts

Janus Henderson Global Dividend Index

clock 15 November 2023 • 3 min read
Trustpilot