There’s really no specific news behind this week’s EM washout. Higher US rates are one major factor, perhaps ongoing trade tensions are another. Yet this week’s price action is simply a continuation of the trend that’s been seen all quarter. For Q2 so far, every EM currency is down except for PHP, with the worst performers being the high beta group RUB, ZAR, BRL, MXN, and TRY. Many currencies have seen their Q1 gains wiped out in Q2, and then some. This trend should continue, as we don’t really get the sense anyone wants to step in front of this freight train now.
50 HMA= 527.40
200 HMA= 528.50