Heading into event risk later today, the market is prepared to get involved in the strong themes of May and June when the USD was bid, US yields were higher, and EM currencies under pressure. Of these themes, our systematic Technical tool, TRENDS particularly highlights ongoing EM currency weakness. Further downside in these currencies is likely contingent on US yields continuing their bearish move. We ultimately expect a move towards 3% in US 10yr yields though are monitoring the recent peaks at 2.75/76%.
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