# Skittishness hits emerging markets, and the Fed's getting the blame

> Emerging markets sold off on Thursday as fears about US trade wars, Federal Reserve rate hikes and ECB bond-buying changes spread. Brazil was hit hardest, with its stock market falling more than 7% at one point and its currency weakening as much as 3% on fiscal and political worries.

- Date: 2018-06-07 · published 2018-06-07T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/5379-skittishness-hits-emerging-markets-and-the-fed-s-getting-the-blame
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Capital outflows from emerging markets weaken their currencies, which lowers the dollar price of their agricultural exports and can pressure global feed prices. Trade-war fears also add risk to soybean and grain demand.

## Read by commodity

- DXY: bullish ▲
- USDBRL: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDBRL | 2018-06-14 | 5 | -5.8% | -3.9 | Broad emerging-market selloff on Fed hikes and trade war fears hit Brazil hardest, with the currency down up to 3% on fiscal and political worries. |
| USDBRL | 2018-06-08 | 1 | -4.7% | -6.6 | Broad emerging-market selloff on June 7 (Fed hikes, trade war fears) with Brazil hit hardest on fiscal and political worries drove capital outflows and a weaker real. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2020-03-19 | [Emerging Markets Are in the Fastest Collapse in a Generation - Bloomberg](https://feedsoft.ai/events/11018-emerging-markets-are-in-the-fastest-collapse-in-a-generation-bloomberg.md) | -1.1% | +2.8% |
| USDBRL | 2018-08-23 | [Here’s how Jackson Hole could impact the dollar, bonds and emerging markets - MarketWatch](https://feedsoft.ai/events/63695-here-s-how-jackson-hole-could-impact-the-dollar-bonds-and-emerging-markets.md) | +1.2% | +0.2% |
| USDBRL | 2026-08-28 | [Emerging Markets-Latam markets slip as Warsh remarks lift Fed hike bets - ILF News \| Rallies](https://feedsoft.ai/events/18165-emerging-markets-latam-markets-slip-as-warsh-remarks-lift-fed-hike-bets-ilf.md) | -1.2% | +0.4% |
| USDBRL | 2022-11-10 | [EMERGING MARKETS-Brazil's real sinks 4%, other FX rally on dollar weakness](https://feedsoft.ai/events/38888-emerging-markets-brazil-s-real-sinks-4-other-fx-rally-on-dollar-weakness.md) | +6.0% | +1.7% |
| USDBRL | 2020-03-19 | [Why the U.S. dollar’s relentless rally is causing pain for emerging markets - MarketWatch](https://feedsoft.ai/events/7018-why-the-u-s-dollar-s-relentless-rally-is-causing-pain-for-emerging-markets.md) | -1.1% | +2.8% |
| DXY | 2018-12-18 | [Fed’s policy decisions have a deep impact in emerging markets - The Globe and Mail](https://feedsoft.ai/events/61747-fed-s-policy-decisions-have-a-deep-impact-in-emerging-markets-the-globe-and-mail.md) | -0.2% | -1.8% |
| DXY | 2021-07-15 | [The loonie is sinking fast – and the Fed is to blame - The Globe and Mail](https://feedsoft.ai/events/46277-the-loonie-is-sinking-fast-and-the-fed-is-to-blame-the-globe-and-mail.md) | +0.5% | +0.4% |
| DXY | 2018-08-23 | [Here’s how Jackson Hole could impact the dollar, bonds and emerging markets - MarketWatch](https://feedsoft.ai/events/63695-here-s-how-jackson-hole-could-impact-the-dollar-bonds-and-emerging-markets.md) | -0.0% | -0.1% |

## Sources

- cnbc.com: https://www.cnbc.com/2018/06/07/skittishness-hits-emerging-markets-and-the-feds-getting-the-blame.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.