FICC Focus Global BIFX Team Shares Strongest FX Views into 2026: FX Moment
Dec 10, 2025
Stephen Chiu, Chief Asia FX and Rates Strategist at Bloomberg Intelligence, shares insights on the bullish outlook for the Chinese yuan driven by favorable trade conditions and converging policies. Meanwhile, Davison Santana, Senior Latam FX Strategist, highlights the Mexican peso's superiority over the Brazilian real, citing lower political risks and market liquidity. The discussion also covers potential gains for the Australian dollar and a positive view on the Hungarian forint, creating a comprehensive picture of global FX dynamics leading into 2026.
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Watch US Data For Policy Shifts
- Monitor US macro and inflation data closely early in 2026 because stronger-than-expected prints could derail the dollar-down narrative.
- Adjust FX positions quickly when Fed narrative changes, as Audrey stresses pragmatism in strategy.
Dollar Likely To Weaken On Fed Cuts
- The BI team expects Fed-driven dollar weakness into 2026 as rate cuts and carry dynamics favor other currencies.
- Audrey Childe-Freeman warns conviction is moderate early next year because US data could prompt a policy pivot.
Aussie Positioned For Sustainable Gain
- Audrey sees a sustainable upside for the Australian dollar driven by stronger growth, sticky inflation and attractive yield differential.
- She also cites Australia's healthier fiscal and current account positions as structural support for AUD appreciation.