Global growth expectations are considerably brighter - ANZ

Global growth expectations are considerably brighter than they were twelve months ago expect analysts at ANZ.

Key Quotes

“As such, in 2017, market positioning will not provide the same room for positive surprises in Asian and commodity currencies as it did in 2016.”

“Geopolitical concerns will remain a focus for markets and a key source of uncertainty, but they are becoming so widely shared that they cannot provide a reliable driver of returns.”

“We are focused on the sustainability of the recent move higher in inflation, and therefore yields. If sustained, we believe it will remain a key driver of FX market trends.”

“Most notably, diminishing liquidity will continue to challenge the ‘hunt for yield’ and keep pressure on the AUD, the NZD, and USD/Asia.”