Emerging Market Currencies Still Under Selling Pressure: BAML

Cross-border financial flows are of interest for several reasons, including the information they provide about changes in a country’s indebtedness, foreign investor attitudes toward domestic assets, and current account balance. In a recent report BAML has featured a key trend in the Liquid Cross Border Flows. EUR Buying Undeterred By Negative Rates After an event filled week (global PMIs, ECB, US payrolls), markets continue to buy EUR  and sell USD , continuing a trend from last week. The threat of negative rates is not deterring hedge funds or real money from buying EUR. As hedge funds are repurchasing EUR from…