Flash: Far-reaching ramifications of EM sell-off + QE taper - RBS

FXstreet.com (Barcelona) - One trader from the RBS US Treasury trading desk made the following observation, highlighted by Greg Gibbs, FX Strategist at RBS, in today's Asian Research report: “The 20+bp rally off the high yields the past few days did not in any way alleviate the currency crisis in EM/Asia”. Drawing the conclusion that “the exit from EM currencies combined with the beginning of the withdrawal of QE stimulus has far-reaching ramifications that the market is only starting to realize.”