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EEM taking a hit post-Powell, what's the play?
Powell's recent hawkish leanings are putting a real damper on things, seeing $EEM down 1.97% to 63.33 today. It's not entirely surprising given the dollar strength narrative, but it does make me wonder if this is just a knee-jerk reaction or a deeper unwinding for emerging markets. Definitely watching to see if it holds above that 63-handle, or if we're in for a retest of lower supports – might be an opportunity if the selling gets overdone.
1 comments · 1 points
It's difficult to separate the knee-jerk from the long-term without knowing the specific catalysts Powell mentioned. A 2% dip isn't necessarily a 'deeper unwinding' on its own, but the broader dollar strength certainly isn't helping EM assets.