Risk Aversion and Central Bank Frenzy

Risk Aversion and Central Bank Frenzy 

Rarely do we see a week characterized by five interest rate decisions from major EM central banks (Poland, Brazil, Indonesia, Malaysia and Mexico), in addition to the five G10 central banks meeting this week as well. We try to keep things easy and simple and forecast rates unchanged across the board.

External factors drove a trend for weaker EM FX last week, which was only resisted by the most resilient currencies – TRY, IDR and MYR – which returned up to 0.4% vs. USD. All others traded weaker, with EMEA FX again recording the largest losses.

Cristian Maggio

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