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Analysts at SEB said emerging market currencies including the Brazilian real, Turkish lira and Mexican peso are suffering from rising US interest rates and a recent slowdown in global growth. They do not yet see a buying opportunity in these currencies.
SEB expects the selloff not to turn into a 2014-2015 style rout, but says the market needs positive news first.
Continued pressure on emerging market currencies can make dollar-priced commodity imports more expensive for EM feed buyers while cheapening their exports. The effect on world feed prices is modest unless the selloff deepens.
exchangerates.org.ukFrançois AuréMay 21, 2018After 301 past bullish macro events, Brazilian Real (BRL per USD) moved a median +0.4% over 5 sessions (57% higher; middle half -1.2% to +1.7%), and +1.0% over 20.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
