Waning risk appetite is being confirmed by EM currencies

Waning U.S. equity risk appetite is being confirmed by developing-nation currencies.

The MSCI Emergency Markets Currency Index was a leadingindicator of distress during the first quarter, but lagged during the little correction in June.

This time around the lag is noticeably larger, and to some extent the magnitude of moves probably represent a ‘catch-up’ as positions are liquidated virtually en masse in less-than-ideal liquidity conditions.

Source: Bloomberg Pro Terminal
Chart: Used with permission from Bloomberg Finance L.P.

Read more:
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance