Policy actions and politics will shape investment climate in 2Q – BBH

By FXStreet Analysts from Brown Brother Harriman, believe there are two broad forces that will shape the investment climate in developed markets: policy actions and politics.

Key Quotes:

“Policymakers and investors will be monitoring the impact of policy actions taken over the last couple of months. Several major central banks including the European Central Bank (ECB), the Bank of Japan (BOJ) and the People’s Bank of China (PBOC) eased monetary policy. For its part, the Federal Reserve refrained from hiking rates in March, which in December it suggested was likely. Barring a new shock or a marked turn in the economic data, we expect the Federal Reserve to hike rates at the June Federal Open Market Committee (FOMC) meeting. We continue to expect at least one hike in H2 as well.”

“The second broad force shaping the investment climate is politics. The UK referendum on continued membership in the European Union is the obvious highlight, but that is not all. The Dutch will hold a referendum on EU membership for Ukraine, which could have wider political implications. There will be local elections in the UK and Italy in May which could have consequences for the national parties. Meanwhile, despite elections, Spain, Ireland and Slovakia …read more

Source:: FX Street