Modest headwinds for CEEMEAs - Rabobank
Analysts at Rabobank point out that the emerging markets had a very good start to the New Year as capital inflows accelerated to a 7-month high of USD 30bn in January, according to the Institute of International Finance.
Key Quotes
“That said, the global sell-off at the end of January/beginning of February caused some outflows.”
“The CEEMEA currencies coped extremely well with the sudden spike in risk aversion.”
“While such resilience reduces the risk of significant capital outflows, high US Treasury yields (the 10-year is trading close to the psychological level of 3%) accompanied by tentative rebound in the US dollar are the source of headwind for the CEEMEAs.”
“A cautious approach is also justified by fading recovery in US stocks from the recent lows.”
Author
Sandeep Kanihama
FXStreet Contributor
Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.
