EMFX are broadly bouncing back from Friday’s non-farm payrolls induced losses, without any major driver / news to guide the relief. However, we also continued to see some EM central banks step in to sell dollars, which highlights the stress some local markets are going through as capital is being pulled out of EM. Although the week is kicking off relatively lightly in terms of data, the second half is filled with central bank meetings, both in the core and LATAM, leaving lots of event risk to drive some volatility.
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Scotiabank