BAML Warns Of Trouble In Emerging Markets Currencies

Bank of America Merrill Lynch analysts take a cautious view on currencies in emerging markets, and is particularly bearish on Asia FX after signs of China moving to a flexible exchange rate regime. Alberto Ades and colleagues at BAML in their August 13, 2015 research note titled: “Trouble in the East” anticipate further downward pressures on most Latin American currencies as commodity prices fall. Further flattening in emerging markets interest rate curves Ades and team note the U.S. July employment report was another stepping stone toward a September liftoff. The analysts point out that Treasury and Bund curves have flattened,…