Emerging Markets: BBH Market Strategists provide intra-day commentary on currency, economic and geopolitical developments in the emerging and frontier markets.
The US Treasury named China as a currency manipulator, raising trade tensions further. A trade deal this year is now highly unlikely, and an extended trade war raises US recession risks. Still, we remain positive on the dollar and very negative on EM. Continue reading “Thoughts on US-China Relations and the Investment Implications”
The dollar is undergoing a correction as the slide in US interest rates accelerates in response to the renewed tariff threats. Once again, we think US rates markets are getting too pessimistic on the US outlook and so we are sticking with our broad macro calls that were working well until the tariff news hit last Thursday. Continue reading “Latest Thoughts on the US Economic Outlook”
EM remains under severe pressure. The less dovish than expected Fed, renewed trade tensions, and a broad-based dollar rally have conspired to absolutely crush EM FX and equities. These drivers are likely to carry over into this week and so we remain bearish on EM. Continue reading “EM Preview for the Week Ahead”
The Fed delivered a less dovish than anticipated cut.
Continue reading “Powell and Fed Much Less Dovish Than Anticipated”