Turning Tactically Neutral Towards FX

Our preferred asset class since the start of 2011 has been currencies, but from a tactical perspective we are turning more neutral as global headwinds build and hiking cycles come to an end. We are not saying that the carry trade is over for good, nor are we calling for substantial depreciation of regional majors against the US dollar - we hold to our view of moderate appreciation against the greenback over the next few years - but we do believe that the appeal of some of our regional favourites is more muted now than at the start of the year.

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