Asia EM FX (+1%) led a broad rally this morning across the Emerging Markets owing to President Trump not imposing further sanctions on Chinese Trade. Friday’s announcement came as a relief for investors with bullish EM positions, especially in Asia FX, as some sort of further escalation of the China-US tension was expected. Given ongoing domestic tensions in both countries the importance of the trade war has been damped slightly as the two global powers try to resolve their public unrest.

Will the bullish outlook on EM diminish as soon as domestic tensions ease? Discuss…

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