# EMFX: Diverging On Domestic Forces Not Less Fed Easing Hopes

> A Continuum Economics outlook says emerging-market currencies have weakened against the dollar this year but not more than developed-market currencies, with divergence driven by domestic politics and fundamentals. It flags risks for the South African rand from coalition politics, a weaker yuan as acceptable to Chinese authorities, and a Mexican peso sensitivity to a possible Trump election. Fed easing expectations have been reduced.

- Date: 2024-05-03 · published 2024-05-03T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/5874-emfx-diverging-on-domestic-forces-not-less-fed-easing-hopes
- Commodities: [South African Rand (ZAR per USD)](https://feedsoft.ai/c/USDZAR.md), [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

Currency moves in major feed-importing and exporting EM economies affect local buying power and export competitiveness, but this outlook describes no immediate single shock.

## Read by commodity

- USDMXN: bullish ▲
- USDZAR: bullish ▲

## Sources

- continuumeconomics.com: https://continuumeconomics.com/a/92c53522/emfx-diverging-on-domestic-forces-not-less-fed-easing-hopes

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