Emerging market FX to fall another 4-5% - Morgan Stanley
In other words, they expect a stronger dollar narrative to prevail.
The firm is downgrading their view on emerging market (EM) FX for the second time in two weeks, expecting another 4-5% drop given the current market landscape.
The MSCI EM currency index fell by 0.7% at the lows today and was poised for its biggest daily drop since March last year, only to recover a little upon testing the key support.
That highlights the dollar's standing right now in the market and how vulnerable other currencies, including EM currencies, are to the recent resurgence in the greenback.
Now, from a technical analysis, wait for the price to form a continuation pattern and watch strong price action for buy.
The firm is downgrading their view on emerging market (EM) FX for the second time in two weeks, expecting another 4-5% drop given the current market landscape.
The MSCI EM currency index fell by 0.7% at the lows today and was poised for its biggest daily drop since March last year, only to recover a little upon testing the key support.
That highlights the dollar's standing right now in the market and how vulnerable other currencies, including EM currencies, are to the recent resurgence in the greenback.
Now, from a technical analysis, wait for the price to form a continuation pattern and watch strong price action for buy.
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