Markets continue to display signs of nervousness asboth EM and G10 FX vol is higher; but there appears to be no increase ingeneral fears as US equities are higher, US10‐years are off their lows andthe best performing currencies are MXN and AUD into the open. Thefocus globally continues to be on the EM; however confirmation of a soft HSBC Chinese PMI did not provoke markets further. Today’s risk is Q4 USGDP, pending home sales, EM and ongoing reaction to the Fed.
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Scotiabank