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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
- The USD weakness in the past week following Powell's 'dovish' speech at Jackson Hole has been supporting EM risky assets, especially equities.
- The chart below shows that after receiving support at the low of their LT downward trending channel, EM equities (EEM) are currently testing key resistance at 53.40, which corresponds to the 100D and 200DMA.
- A break above that level would open the door for a move up to 54.30 (high of the downward trending channel).
- Even though the trend on the USD looks slightly bearish, momentum on the Dollar could resume as Fed taper nears (consensus is currently pricing an announcement in November for a December start).
- Next important data to watch is US non-farm payrolls on Friday, which could also have a significant impact on EM markets; a big 'miss' following the poor ADP print on Wednesday could increase the selling pressure on the USD.
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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