Fed s vaccine optimism weighs on soaring unemployment claims and drop in November retail sales.
James Knightley, ING s Chief International Economist piles hope on heavy savings and cash ammunition to fuel positive outlook for 2021.
Fed s growing dovish stance bets rally in the emerging markets and currencies. MSCI s Index for EMs peaks to its highest levels after over two years as the risk on US dollar weakens with near to zero interest rates. The Federal Reserve Chairman Jerome Powell s accommodative stance comes ahead of the path to economic revival.
Emerging Markets to Boom?
Fed s near-zero interest rates coupled with weakening dollar can nurse the developing economies to recovery amid the virus turmoil. Geoff Dennis, Emerging Markets Commentator believes that the EM assets will continue to outperform as US Dollar dips. Dennis anticipates, Emerging Markets like China, Taiwan, Korea are expected to outperform due to greater cyclical trades. The relief on interest rates heal