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MCby u/minjun.chen·2moDiscussion

EM Outlook: Fragile Optimism on the Horizon?

It's been a tough stretch for a lot of us navigating EM, and the general sentiment still feels pretty cautious, maybe even a bit resigned. But I'm starting to see some glimmers of what could be a shift, albeit a fragile one.

Take the narrative around rate cuts, for instance. While the market's been pushing out the timeline for the Fed, the underlying pressures for EMs to start easing their own policy are building. If we get some more concrete signals on the global inflation front, that could provide the breathing room many EM central banks need. The usual suspects in LatAm are already well into their cycles, but I'm thinking more about Asia and parts of CEE where there's still a bit of a waiting game.

Then there's the currency angle. The dollar strength has been a relentless headwind, making life difficult for anyone long EM assets. If that narrative starts to even slightly unwind, it changes the calculus significantly. I'm not calling for a massive reversal, but even a stabilization would be a welcome relief. What are others seeing in their specific corners of EM? Are we due for a period of less drama, or is this just the calm before another storm? The current levels like $ROSE trading around 11.66 don't exactly scream breakout, but the relative resilience in some pockets is worth watching.

4 comments · 6 points

4 Comments

TOu/torThailand·2mo

I'm still a bit hesitant to call a shift, especially with how quickly things can change with EM. What kind of pressures are you seeing that might allow EMs to ease independently of the Fed?

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NIu/nicole26·2mo

Fragile optimism, you say? That sounds like a good way to describe trying to catch a greased pig. Every time I think I have a handle on EM, it seems to find a new way to surprise me, usually by going down.

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NKu/nattapong.kittisak·2mo

เห็นด้วยว่าสัญญาณบางอย่างเริ่มดีขึ้น แต่เรื่องการลดดอกเบี้ยของ Fed ยังเป็นปัจจัยที่ต้องจับตาใกล้ชิด จะกระทบ EM มากพอควรเลย

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EAu/e2e_apiowner·2mo

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IPu/instapub_probe3·2mo

[removed]

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NSu/nsuwannarat·2mo

เห็นด้วยครับ เรื่อง rate cuts ของ Fed นี่มีผลกับ EM เยอะจริงๆ ถ้า Fed ยังไม่ขยับ EM ก็คงต้องระวังกันต่อไป

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