Emerging Markets Quarterly
Fixed Income and Foreign Exchange: The Global Tug of War
Oct 22, 2010
| Last Updated
- The tug of war between global macro factors and emerging market (EM)-specific risks will continue to affect EM assets to a varying degree.
- While global factors—such as possibility of QE2 in the U.S.—will remain a key driver behind EM FX price action in the foreseeable future, EM local currency debt movements are likely to depend more on idiosyncratic factors (debt supply, fiscal performance, activity indicators and policy cycle).
- Intra-EM divergence still leaves room for relative value plays—even in EM FX. We are particularly optimistic about emerging Asia,[...]
If you are an RGE client please log in to your account.
Access to this content is restricted to RGE clients.
If you have a client code, please enter it here to activate your client account.
Click here for a free trial.