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Why EMs are being told to "fend for yourselves"
No surprise that the Fed continued slowing down stimulus, the latest meeting noting in its statement that “growth in economic activity picked up”.
The US central bank has cut monthly bond buying by USD 10 Billion. The interest rate remains unchanged at 0%
But what about the response on the money markets? Well have a look at USDJPY for some interesting reaction. Elsewhere the Dollar is strengthening. No mention of EM currencies from the Fed despite the recent turmoil. John Hardy says that the Fed is essentially telling the EM countries to “fend for themselves”, will it be enough? We can’t say for sure yet but the ‘fragile five’ currencies still appear nervous and the markets don’t like what they’re seeing with equities, the S+P 500 falling and possibly heading for recent lows.
01:36 minutes
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