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    Multi Asset chart of the week

    Multi Asset chart of the week

    11 December 2024 Multi-asset
    Week to 13 December 2024

    Final central bank meetings of 2024 open door to further rate cuts

    Christopher Broadley, Portfolio Manager in Multi-Asset Strategy Team, said: "The final developed market central meetings of 2024 are scheduled to occur over the next 10 days, with expectations that most will squeeze one more cut in before year end. The Bank of Canada is most likely to opt for a jumbo 50bp cut (80% chance) while the Swiss National Bank is evenly priced between a 50bp and 25bp cut. While the ECB (Europe) seems nailed on for 25bps, the market still sees a slim (14%) chance the Fed (US) opt to keep rates on hold. The clear outlier is Japan, who begun their hiking cycle back in March and are likely to continue raising rates in 2025†."

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    Source: Insight Investment and Bloomberg as at 10 December 2024.
    Week to 06 December 2024

    The US Dollar Continues to Offer High Carry Relative to History

    Stephanie Chan, Portfolio Manager in Multi-Asset Strategy Team, said: "Strong demand for the US Dollar has been driven in part by its carry and defensive characteristics. It continues to offer an attractive carry profile versus other developed market currencies. Furthermore, US Dollar exposure can provide a defensive position amidst an uncertain global growth and policy backdrop. In our portfolios we hold a long exposure to the USD versus other developed market currencies†."

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    Source: Insight Investment and Bloomberg as at 03 December 2024.
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