EM FX was mixed last week and that continues into this week, though some markets remain closed today for the Lunar New Year holiday. MXN, BRL, and ZAR were the best performers last week, while TRY, HUF, and RON were the worst. MXN continues to gain despite signs that Trump will maintain a bellicose stance towards Mexico, but we think the peso remains vulnerable to further selling.
Three major central banks meet in the week ahead
- There are several important reports that will give investors more insight into how the economies have begun the New Year
- Although the Lunar New Year holiday runs through the week, China will report the manufacturing and the non-manufacturing PMI, and Caixin will report its manufacturing PMI
- EM FX was mixed last week and that continues into this week, though some markets remain closed today