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May 15, 2018

FXTM | Market Insights - May 15, 2018.

Market Insights
Daily coverage of the latest market developments, brought to you exclusively by FXTMs Market research team.
 
Selling pressure in emerging market currencies accelerates following latest Lira decline
Posted 15th May 2018 at 03:49 PM
Jameel Ahmad
Jameel Ahmad
VP Market Research
Twitter: @Jameel_FXTM
Emerging market currencies across the globe are coming under renewed selling pressure during trading this week.
The exact catalyst behind why the emerging market currencies continue to be plagued by selling momentum is a difficult one to determine, although the latest indications suggest that the motivator could now be beyond central bank expectations for higher US interest rates. It is being suggested that the persistent Turkish Lira weakness could be weighing down on the general emerging market sentiment.
Although investors were previously treating developments around currencies like the Turkish Lira and the Argentine Peso as idiosyncratic matters, we are now noticing similarities between the selloff in Turkey and Argentina leading to declines in emerging markets elsewhere. The latest indication of this was on Tuesday morning when comments from Turkish President Erdogan on domestic central bank policy appear to have encouraged weakness in emerging market
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