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Citi Remain Cautiously Positive EMFX

EM FX

Citi write that EMFX remains at risk from a more unruly move in US rates, but their internal warning indicators are yet to be triggered, which should keep the outlook cautiously positive.

  • They add that oil exporters should outperform EUR proxies, and that investors should favour linkers, steepeners (particular in a dovish CB region) and payers as the inflation narrative has further to run.

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