12 Jun 2015
EM FX outlook remains bearish despite the correction higher – BBH
FXStreet (Edinburgh) - The research team at BBH keeps the negative perspective on the EM currencies in spite of this week’s solid performance.
Key Quotes
“Despite a pullback overnight, the recovery in EM currencies this week has been impressive”.
“After several currencies made new lows against the dollar to end last week, most have gained some traction this week despite the firm US data”.
“Commodity exporting countries were the biggest beneficiaries. COP is up 3.6% over the last 5 trading sessions, while MXN, RUB, and BRL gained nearly 2.0%”.
“We view this as another corrective move within the medium-term bear market”.
“Even though we think speed of the move lower in EM currencies will diminish, we expect them to come under renewed pressure during periods of broad dollar strength”.
Key Quotes
“Despite a pullback overnight, the recovery in EM currencies this week has been impressive”.
“After several currencies made new lows against the dollar to end last week, most have gained some traction this week despite the firm US data”.
“Commodity exporting countries were the biggest beneficiaries. COP is up 3.6% over the last 5 trading sessions, while MXN, RUB, and BRL gained nearly 2.0%”.
“We view this as another corrective move within the medium-term bear market”.
“Even though we think speed of the move lower in EM currencies will diminish, we expect them to come under renewed pressure during periods of broad dollar strength”.