will government's massive surge in investment ... - Myiris.com

Apr-Jun 2013 Earnings Preview
Global Currency Movement
Countries with large CAD see sharp fall in
their currencies as a result of capital
outflows. US$ strengthens against most
currencies due to the gathering strength in
its economy. Rising US yields make carry
trade less viable. Yield differential between
the US and other Emerging Markets
widening also leading to outflows of debt
capital from Emerging Markets
Month‐on‐Month
(%)
2.0 1.3
1.0
-
(1.0) (0.0)
(2.0)
(1.0)
(3.0)
(2.0)(2.1)(2.2) (2.4) (2.5)
(4.0)
(3.0)(3.0) (3.2) (3.5)(4.0)(4.3)(4.5)
(5.0)
(6.0)
(5.5)
Source: Bloomberg, PL Research
Calendar Year‐to‐date
(%)
4.0
2.0
-
(2.0)
(4.0)
(6.0)
(8.0)
(10.0)
(12.0)
(14.0)
(16.0)
(1.6)
1.6
(2.7)
(3.7)
(6.2)
(7.6)
(14.3)
(2.6)
(4.7) (5.1) (6.1)
(8.3)
(8.3)
(9.6)
(8.9)
(12.6)
Source: Bloomberg, PL Research
Adoption of ultra loose monetary policy
Year‐on‐Year
and massive fiscal stimulus lead to sharp
weakening of Japanese YEN as desired by
the policy makers there. Slow down in
China manifesting in weakening demand
for resources from Australia leading to
weakening in its currency
(%)
10.0
5.0
-
(5.0)
(10.0)
(15.0)
(5.1)
3.9
(0.7)
(3.9)
0.9
(0.9)
(0.7)(1.1)
4.4
1.2
(3.5) (4.0)
(8.1)
(11.0) (10.3)
(20.0)
(25.0)
(21.4)
Source: Bloomberg, PL Research
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