EM/USD has upside over medium term – Wells Fargo

Most EM currencies will have moderate appreciation against US dollar, but BRL or MXN could be more affected at margin

Mexican peso: "moderate appreciation" expected in most EM currencies, but the peso and Brazilian real could be exceptions


Emerging market (EM) currencies are set to appreciate against the US dollar over the medium term, even against a backdrop of developed market central bank tightening, says Erik Nelson, a currency strategist at Wells Fargo, which topped FX Week’s three-month EM forecast table last week.

“In our view, monetary tightening has for the most part either been well telegraphed (e.g., the Federal Reserve) or should be very gradual (e.g., the European Central Bank), and th

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