Avoid Hyperbolic Alarmism (AHA)
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The main investing lesson from the past two years is to avoid alarmist hyperbole
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Global H2-22 Outlook – Near the tipping point
The desk believes that the market's shift from inflation concerns to recession fears will create volatility in FX markets, particularly impacting risk-sensitive currencies. Per the full note from Standard Chartered, the growing downside risks to growth are now a focal point for investors, suggesting a potential recalibration of positions. This transition is underscored by recent economic indicators showing a slowdown in growth forecasts. With our consensus target for EUR/USD at 1.075, the market is poised for significant movements as traders navigate these conflicting narratives.