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Financials Retrace Lower Ahead of Fed Meeting

EMERGING MARKETS
  • EM Financials continue to retrace lower ahead of the Fed meeting as US Dollar has been edging higher in the past week with the DXY index currently testing its 50D SMA at 91.64.
  • EM Financials Failed to break through their 351.10 resistance earlier this month, which corresponds to the 61.8% Fibo retracement of the 223.80 – 429.79 range (2018/2021 range).
  • Main risks for EM equities: a USD appreciation combined with a constant rise in uncertainty as DM economies keep delaying the global reopening.

Source: Bloomberg/MNI

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