{"id":601105,"date":"2019-02-19T03:59:56","date_gmt":"2019-02-19T03:59:56","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2019\/02\/19\/em-currencies-begin-giving-traders-the-jitters\/"},"modified":"2019-02-19T03:59:56","modified_gmt":"2019-02-19T03:59:56","slug":"em-currencies-begin-giving-traders-the-jitters","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2019\/02\/19\/em-currencies-begin-giving-traders-the-jitters\/","title":{"rendered":"EM currencies begin giving traders the jitters"},"content":{"rendered":"<p><b>EM currencies begin giving traders the jitters:<\/b> Currency traders are beginning to take note of risk in individual emerging-market currencies, <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2019-02-17\/specter-of-idiosyncratic-risks-returns-to-haunt-emerging-markets?srnd=premium-middle-east\">Bloomberg reports<\/a>. EM saw a deluge of inflows at the start of the year, becoming Bank of America Merrill Lynch\u2019s <a href=\"https:\/\/www.reuters.com\/article\/us-funds-survey-baml\/emerging-markets-most-popular-trade-for-first-time-in-baml-survey-idUSKCN1Q119W\">\u201cmost crowded\u201d trade for the first time ever<\/a>. However, developing risks in individual countries are now starting to weigh on traders\u2019 minds. The MSCI FX index has experienced two consecutive weeks of losses for the first time since September, and almost fell below the 100-week average at close on Friday.<\/p>\n<p><b>Which EM currencies are most at risk? <\/b>Events in South Africa and Nigeria last week caused currency and equity sell-offs in both countries. The South African rand became <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2019-02-14\/rand-volatility-tops-global-peers-as-south-africa-risks-mount\">worst-performing EM currency<\/a>, as a potential bailout of the debt-laden state electricity company Eskom prompted warnings of a sovereign downgrade. Meanwhile traders exited the Nigerian naira and sold stocks yesterday after <a href=\"https:\/\/www.reuters.com\/article\/nigeria-election-markets\/update-2-nigerian-assets-fall-as-election-delay-fuels-uncertainty-idUSL5N20D22O\">the last-minute delay of the country\u2019s election<\/a> fuelled concerns about political instability.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>EM currencies begin giving traders the jitters: Currency traders are beginning to take note of risk in individual emerging-market currencies, Bloomberg reports. EM saw a deluge of inflows at the start of the year, becoming Bank of America Merrill Lynch\u2019s \u201cmost crowded\u201d trade for the first time ever. However, developing risks in individual countries are [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":601106,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[9272],"tags":[7106,115,72,125,1510],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-601105","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-macro-picture","tag-debt","tag-emerging-markets","tag-enterpriseam","tag-investment-watch","tag-the-macro-picture","wpautop","entry"],"acf":{"mongo_id":"4ac28e39-e439-4923-9b80-628b99fc1c98","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2019\/2\/2826.jpg","photo_position":"above","related_issue":[601084],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>EM currencies begin giving traders the jitters - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2019\/02\/19\/em-currencies-begin-giving-traders-the-jitters\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"EM currencies begin giving traders the jitters\" \/>\n<meta property=\"og:description\" content=\"EM currencies begin giving traders the jitters: Currency traders are beginning to take note of risk in individual emerging-market currencies, Bloomberg reports. EM saw a deluge of inflows at the start of the year, becoming Bank of America Merrill Lynch\u2019s \u201cmost crowded\u201d trade for the first time ever. However, developing risks in individual countries are [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2019\/02\/19\/em-currencies-begin-giving-traders-the-jitters\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2019-02-19T03:59:56+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/ent.news\/2019\/2\/2826.jpg?fit=%2C&ssl=1\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2019\/02\/19\/em-currencies-begin-giving-traders-the-jitters\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2019\/02\/19\/em-currencies-begin-giving-traders-the-jitters\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"EM currencies begin giving traders the jitters\",\"datePublished\":\"2019-02-19T03:59:56+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2019\/02\/19\/em-currencies-begin-giving-traders-the-jitters\/\"},\"wordCount\":170,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2019\/02\/19\/em-currencies-begin-giving-traders-the-jitters\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2019\/2\/2826.jpg?fit=%2C&ssl=1\",\"keywords\":[\"debt\",\"emerging markets\",\"EnterpriseAM\",\"investment watch\",\"THE MACRO PICTURE\"],\"articleSection\":[\"THE MACRO PICTURE\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2019\/02\/19\/em-currencies-begin-giving-traders-the-jitters\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2019\/02\/19\/em-currencies-begin-giving-traders-the-jitters\/\",\"name\":\"EM currencies begin giving traders the jitters - 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EM saw a deluge of inflows at the start of the year, becoming Bank of America Merrill Lynch\u2019s \u201cmost crowded\u201d trade for the first time ever. 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There's more to come.\u201d \u2014Welcome to the new narrative on EM. May has been a bad month for EM bonds, equities and currencies \u2014 and it could get worse as stalled US-China trade talks prolong uncertainty in the market.Off the proverbial cliff? EM\u2026","rel":"","context":"In &quot;THE MACRO PICTURE&quot;","block_context":{"text":"THE MACRO PICTURE","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/5\/2220.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":593429,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/11\/27\/emerging-markets-fx-funding-needs-to-repay-usd-denominated-debt-to-soar-next-year\/","url_meta":{"origin":601105,"position":2},"title":"Emerging markets\u2019 FX funding needs to repay USD-denominated debt to \u201csoar\u201d next year","author":"enterpriseam admin","date":"27 November 2019","format":false,"excerpt":"Emerging markets\u2019 FX funding needs to repay a decade of USD-denominated debt are on track to \u201csoar\u201d next year, Caroline Grady writes for the Financial Times. EMs have racked up significant debts since the 2008 global financial crisis, and are scheduled to repay nearly USD 800 bn-worth of debt on\u2026","rel":"","context":"In &quot;THE MACRO PICTURE&quot;","block_context":{"text":"THE MACRO PICTURE","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/11\/1221.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":591667,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/12\/12\/how-do-analysts-feel-about-emerging-markets-going-into-2020\/","url_meta":{"origin":601105,"position":3},"title":"How do analysts feel about emerging markets going into 2020?","author":"enterpriseam admin","date":"12 December 2019","format":false,"excerpt":"How do analysts feel about emerging markets going into 2020? Emerging markets are set to outperform developed markets in 2020, predict 57 global investors, traders and strategists in a Bloomberg survey, with all assets \u2014 currencies, stocks, and bonds \u2014 having rallied this year after 2018\u2019s EM Zombie Apocalypse. Total\u2026","rel":"","context":"In &quot;THE MACRO PICTURE&quot;","block_context":{"text":"THE MACRO PICTURE","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/12\/2354.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":563158,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/06\/21\/hawks-at-the-fed-egypt-shouldnt-sweat-it\/","url_meta":{"origin":601105,"position":4},"title":"Hawks at the Fed? Egypt shouldn\u2019t sweat it.","author":"enterpriseam admin","date":"21 June 2021","format":false,"excerpt":"The EGP will hold up better than most other emerging-market currencies in the event of tightening at the Federal Reserve, given its attractive real interest rates, an analyst at Fidelity International tells Bloomberg. The currency, along with the Ghanaian cedi, have an \u201cenormous\u201d advantage over their peers in terms of\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/6\/264.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":597046,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/07\/15\/does-currency-devaluation-actually-increase-exports-in-emerging-markets\/","url_meta":{"origin":601105,"position":5},"title":"Does currency devaluation actually increase exports in emerging markets?","author":"enterpriseam admin","date":"15 July 2019","format":false,"excerpt":"Currency devaluation increases exports, right? Not always. The depreciation of emerging-market currencies may actually result in falling exports, research by the Bank of International Settlements (BIS) and the FT suggests. Conventional wisdom tells us that a weakening currency makes exporters more competitive in the international market, causing an increase in\u2026","rel":"","context":"In &quot;THE MACRO PICTURE&quot;","block_context":{"text":"THE MACRO PICTURE","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/7\/980.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/601105","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=601105"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/601105\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/601084"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/601106"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=601105"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=601105"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=601105"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=601105"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=601105"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}