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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
EMERGING MARKETS
- Over time, we know that EM equities have been very sensitive to the dynamics the US Dollar; weaker USD has generally been associated with higher EM equities, and vice versa.
- The chart below shows that EM equities peaked in mid-February this year, with the EEM ETF reaching an all-time-high of 58.30, 6 weeks after the USD started its consolidation in Q1.
- However, the recent weakness in the US Dollar since the start of April has not levitated EM equities, which continue to consolidate lower and are now down over 11% since their all-time-high.
Source: Bloomberg/MNI
- EEM ETF is currently flirting with its 51.64 support, which corresponds to the 23.6% Fibo retracement of the 30.10 - 58.30 range (2020/2021 low high); a break below that level would open the door for a move down to 50.10 (200D SMA).
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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