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While most attention has been on...>

EMERGING MARKETS
EMERGING MARKETS: While most attention has been on US nonfarm payrolls today,
the EM space is under continued pressure. No real signs of EM crisis or broader
contagion, but the space bears watching as weekly closes at current levels
(particularly for FX) suggests that further weakness lies ahead.
- FX weakness has continued as the Turkish lira hit an all time low today versus
the USD (Try4.2901/USD at one point, versus Try3.9557/USD at the start of
April).
- Argentina is in a troubled situation with the central bank hiking its
seven-day repo rate by 675bps to 40.0% to fend off peso weakness.
- The JP Morgan emerging FX index is set to close down 2% this week at a
one-year low.
- The EMBI Global spread is wider by 30bps since April 24 and at 352bps is at
the highest since Jan 2017.

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