SEB: growth and commodity prices are key for emerging markets

If growth continues to slow, the EM FX sell-off will be prolonged

China - US - trade - Getty - web.jpg
Trade wars: tariffs will be a “manageable headwind” for EM currencies in Asia and Latin America if the spat does not escalate, says Hammerlund


Further signs of a global economic slowdown and lower commodity prices would weigh more on emerging markets currencies than a limited-scale trade war, says Per Hammarlund, chief EM strategist at SEB.

The US-China trade war materialised in a first round of tariffs on $34 billion of Chinese imports on July 6, followed by a second round on $16 billion of imports. Intensifying trade tension is, however, only a “contributing factor” in the weakness of EM currencies

To continue reading...

You need to sign in to use this feature. If you don’t have a FX Week account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: