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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
- Demand for the greenback has been strong this month driven by the renewed geopolitical tensions with Europe preparing more sanctions against Russia.
- The DXY indexbroke above the psychological 100level this week after breaking above the 99.7290 level last week, which corresponds to the 76.4% Fibo retracement of the 89.21 – 102.98 range (2020/2021 high low).
- EM equities (MXEF index) have been trending lower in the past week after finding resistance at their 50DMA earlier this month; the index is approaching its1,100 support, which corresponds to the 50% retracement of the 751.80 – 1,449.40 range.
- A break below that level would open the door for a move down to 1,018.25 (61.8% Fibo). ·
- Part of the downtrend in EM equities has been driven by the fall in Chinese stocks, which account for 30 percent of the index.
- Using a P/B z-score approach, we saw that China equities are now the ‘cheapest’ EM equity markets (excluding Russia from ranking as P/B value is 0) as zero-Covid policy continues to weigh on the real economy and domestic risky assets.
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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