Dovish Fed improves conditions for EMFX – Morgan Stanley

Weakening investment outlook for US suggests economic performance falling back in line with rest of world

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Slow going: World Bank cut projections for global growth this year

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US policymakers’ willingness to exercise more caution around the pace of future rate increases is sapping some of the momentum behind the greenback, possibly setting the stage for a rally in emerging markets (EM) foreign exchange, according to strategists at Morgan Stanley.

The 10-year Treasury, which hit 3% last year, is now down to 2.71%. Bond prices move in the opposite direction relative to their yield; higher

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