MARKET INSIGHT: Currency Markets; High yield / commodity currencies take the lead

The following is a summary of a recent article written by Hong Kong based Mitul Kotecha, Managing Director and Head of Global Currency Strategy at Calyon. Mitul has kindly agreed to share his expert currency market views with The Banker's Blog.

The article can be viewed in full on Mitul's website, The Econometer, by clicking here.

• Even though equity markets have fallen in recent sessions, the trading community continue to show an appetite to take risk onto their books
• As a result, high yielding and commodity currencies have emerged as winners in recent trading sessions, particularly AUD, CAD, NZD and NOK. Emerging market currencies have also risen
• Mitul backs a continuation of this trend and is in favour of backing long positions in the above currencies, particularly against JPY, which he expects to come under pressure as the year progresses