EM FX recovered the smile post-FOMC – Danske Bank

Analyst at Danske Bank Thomas Rosenlund noted the positive impact from the recent FOMC meeting on the Emerging Markets space.

Key Quotes

“Emerging markets’ FX rallied following the Fed meeting, recovering much ground lost after the recent pricing of the March Fed rate hike over the past couple of weeks”.

“Notably, the most liquid EM currencies (ZAR, TRY, BRL, MXN and RUB) strengthened, supported by higher commodity prices and an improvement in global risk sentiment”.

“Unless we get a very aggressive fiscal easing or US numbers surprise significantly to the up or downside, the Fed will probably take the backseat as the driver of EM FX in the short term”.

“Together with a fairly stable development in China and relatively solid global growth, this should be a stable or positive environment for EM at least in the near term”.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.