EM FX Carry Trade Update - January 20, 2020
The stronger US dollar has provided a bit of a headwind for carry traders even as the dominant theme across markets is the global reach for yield as G3 central banks and China are all in easing mode and as China allows the renminbi to trade at six month highs. We remain cautious on concerns that the market has gotten ahead of itself.
Chart of the Week: FX Risk Indicator
In today's edition, we focus on the FX space and discuss the evolution of risk perception.