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Emerging market currencies and bonds nearing breakouts from bullish continuation patterns

USD weakness is seeing emerging market currencies gaining, lead by the Russian Ruble. Potential FED rate cuts favour EM countries with dollar-denominated debt and could see more inflows in EM economies. Furthermore, a weaker dollar helps boost commodity exporting EM countries as commodities are likely to gain.

Chart: EM Spot vs USD year to date returns (%)

Chart: EM Currencies and Bond Charts showing bullish continuation patterns