Top 24 Cristian Maggio Inspiration Quotes
Profession: , Birthday: April 15, 2021
The (central bank) may have been wary of a repeat of an August 2015 situation when the market just collapsed after the PBOC allowed a depreciation of about 2.5 percent in a single day, so the move today is a subtle signal that that's not what's going to happen, and the market seems to have taken this signal - at least on the currency side - as a positive, risk-on move.
Easing (by BOE) will be a sign that there is a willingness from major central banks to support growth in the midst of growing uncertainties and that will translate into positive performance for emerging markets, it's liquidity that's being generated elsewhere, part of which will be moving to emerging markets.
This is just an extension of the bull move after the very bad start to the year, what really matters to the market at the moment is what is implied by a potential Fed hike ... If the Fed hikes it's because the economy in the U.S. and therefore the global economy is not doing as badly as previously thought. That's positive news for emerging markets.