FX Daily: Fed providing some breathing space
(MENAFN - ING) USD: Fed providing some breathing space The Fed minutes provided some breathing space to risk assets as they struck a cautious tone, with the committee seemingly aware of the upcoming spike in US inflation in the second quarter and is unlikely to overreact until it is confident that inflation is on track to exceed 2% for some time. Despite the notable rise in US Treasury yields this year, emerging market FX remains relatively resilient. Not only are EM FX valuations not overly stretched, many EM currencies (mainly outside Asia) are benefitting from rising commodity prices,...