Russia FX/Rates Snapshot - August 23, 2019
Though several Fed officials sounded rather hawkish yesterday, avoiding calling for immediate accommodation, we think that the trade war uncertainty, weak US and global manufacturing data, and the Fed's understanding (as stated in the latest FOMC minutes) that the current rather high equity prices and low borrowing costs are based on expectations of more rate cuts leave Chairman Powell no choice but to signal that the Fed will keep acting "as appropriate to sustain the expansion" - meaning, in our view, a readiness to cut rates as much as needed depending on the economic outlook. We think if Powell actually does this today, it will strongly support markets and spur EM FX appreciation.
Sberbank CIB Investment Research is a research firm offering equity, fixed income, economics, and strategy research. It covers analysis on all aspects of Russia’s capital markets, issues and industries. The firm analyzes trends in Russia and combines local knowledge with a global perspective. It processes macroeconomic data, market and company-specific news, stock quotes and other information for providing research reports. The firm provides details and latest prices on the most traded names and most traded paper on all segments Russian market. In strategy research, it provides thematic research, tips and descriptions of the methodology used to evaluate companies.
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