Bloomberg on emerging markets seasonals
I saw this article and thought we would appreciate this on ForexLive. I know we love a good seasonal article. This one is from Bloomberg and that note that , 'May is statistically the worst month for the MSCI EM Currency Index throughout its full history from 1999 onwards...'
They state that 'both the dollar and U.S. yields have been climbing in recent weeks to result in a major tightening of liquidity, and putting a squeeze on external debt. This is coming amid a backdrop of slowing global growth and ongoing trade tensions, with both credit and equity markets struggling'
Ok, so it is not looking great seasonally speaking for emerging markets fx currencies. Well, one currency to think about is South Korea's Won. The Won is going to be vulnerable to any delays in the now hoped for denuclearisation/ peace talks . So, any frustration in the peace talks makes Won shorts an attractive emerging market fx option...Won samples shown below for anyone curious...
