FXWW News/Open/Wrap

Asset managers still fleeing emerging markets

  • The main factor in the financial markets is the exodus from Emerging Markets by professional investors ahead of expected Fed tapering in September.
  • The AUD is the proxy trade amongst the FX majors for EM/risk and it fell heavily over the last 24 hours against the other majors.
  • The EUR benefitted from sizeable in-flows, most likely from the same asset managers exiting EMs, and is currently resting near medium-term range highs at 1.3425 against the USD.
  • USD/JPY is stuck in sideways trading mode, whilst the GBP took a back seat to the EUR leads.
  1. Morning Sean! Are you still targeting 0.93 on AUDUSD? 0.90 held overnight but there was no bounce to speak of. Even advancing US equity market failed to lift it.

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