EM performances: BRL, RUB and ZAR the worst - BBH

FXStreet (Córdoba) - The research team at Brown Brothers Harriman noted the relevance of events in emerging markets that took place during the week.

Key Quotes

“In the EM equity space, Colombia (+1.7), China (+0.7%), and Qatar (+0.6%) have outperformed over the last week, while India (-4.5%), Hong Kong (-3.6%), and Peru (-3.1%) have underperformed. To put this in better context, MSCI EM fell -3.7% over the past week while MSCI DM fell -3.5%.”

“In the EM FX space, PEN (+0.7% vs. USD), CNY (+0.5% vs. USD), and CLP (+0.2% vs. USD) have outperformed over the last week, while BRL (-5.5% vs. USD), RUB (-3.5% vs. USD), and ZAR (-3.0% vs. USD) have underperformed.”

“Brazil’s government will submit budget proposal for 2016 that projects a primary deficit instead of the previously expected surplus (…) Brazil’s COPOM kept rates steady at 14.25% this month, as expected. It was the first time that rates were kept steady since last October.”

EUR/JPY pressures below hourly 50 SMA

EUR/JPY is consolidating the downside after the Nonfarm Payrolls sell-off when the pair dropped from the vicinity of the 50 SMA on the hourly chart at 135.07 and landed a low score of 132.26 after an initial high of 132.96.
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