Flash: Resolution between commodity indicators and EM due – RBS

FXstreet.com (Barcelona) – A resolution in the diverging trends between commodity indicators and EM market assets in the next few months is due, according to Greg Gibbs, FX Trading Strategist at RBS.

Key Quotes

“Either EM stabilises, perhaps on a view that Chinese growth momentum is more assured, growth in major economies is improved and the Fed is likely to move slowly with QE tapering, pushing down US long term yields. Ongoing QE policy in Japan, improving external demand, supporting EM export markets, might help EM capital markets improve.”

“On the other hand, the fundamental position on some large EM markets continues …read more