{"id":602936,"date":"2019-04-10T04:14:38","date_gmt":"2019-04-10T04:14:38","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2019\/04\/10\/why-is-2019-a-new-story-for-em-assets-but-the-same-old-song-for-fx\/"},"modified":"2019-04-10T04:14:38","modified_gmt":"2019-04-10T04:14:38","slug":"why-is-2019-a-new-story-for-em-assets-but-the-same-old-song-for-fx","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2019\/04\/10\/why-is-2019-a-new-story-for-em-assets-but-the-same-old-song-for-fx\/","title":{"rendered":"Why is 2019 a new story for EM assets, but the same old song for FX?"},"content":{"rendered":"<p><b>Why is 2019 a new story for EM assets, but the same old story for FX? <\/b>The MSCI EM currency index hasn\u2019t replicated the gains enjoyed so far this year by EM equities and bonds, <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2019-04-09\/emerging-market-currencies-flash-a-canary-in-coal-mine-warning\">says Bloomberg<\/a>. The index has largely remained flat since January, and perspectives differ as to why \u2014 despite the US Federal Reserve\u2019s pro-growth stance and signs of a US-China trade war truce \u2014 there hasn\u2019t been an uptick.<\/p>\n<p><b>Sensitivity to global slowdown, political volatility: <\/b>Some analysts are pointing to the currency\u2019s greater sensitivity to global growth risks. Those risks are coming primarily from weak growth data in Europe, which are further exacerbated by a strong USD and China\u2019s weak output story. Others are saying political volatility in emerging markets is \u201csqueezing funding for those who want to hedge.\u201d<\/p>\n<p><b>Fund managers might have had their share of EM currencies<\/b> after a decade of easing in advanced economies \u2014 with perhaps more on the way. Foreign direct investment and current account balances also tend to uptick at a slower rate than stocks and bonds when central bank policies and global risk appetite shift favorably.<\/p>\n<p><b>Looking forward, <\/b>Chinese recovery and an easing of geopolitical risks coupled with policy support from major economies will put the index on the right track.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Why is 2019 a new story for EM assets, but the same old story for FX? The MSCI EM currency index hasn\u2019t replicated the gains enjoyed so far this year by EM equities and bonds, says Bloomberg. The index has largely remained flat since January, and perspectives differ as to why \u2014 despite the US [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":602937,"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":[115,72,2403,724,1510],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-602936","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-macro-picture","tag-emerging-markets","tag-enterpriseam","tag-global-economy","tag-monetary-policy","tag-the-macro-picture","wpautop","entry"],"acf":{"mongo_id":"fb39074a-3922-4507-a0a6-dba7a1888f94","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2019\/4\/1570.jpg","photo_position":"above","related_issue":[602917],"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>Why is 2019 a new story for EM assets, but the same old song for FX? - 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\/04\/10\/why-is-2019-a-new-story-for-em-assets-but-the-same-old-song-for-fx\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why is 2019 a new story for EM assets, but the same old song for FX?\" \/>\n<meta property=\"og:description\" content=\"Why is 2019 a new story for EM assets, but the same old story for FX? The MSCI EM currency index hasn\u2019t replicated the gains enjoyed so far this year by EM equities and bonds, says Bloomberg. The index has largely remained flat since January, and perspectives differ as to why \u2014 despite the US [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2019\/04\/10\/why-is-2019-a-new-story-for-em-assets-but-the-same-old-song-for-fx\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2019-04-10T04:14:38+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/ent.news\/2019\/4\/1570.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\/04\/10\/why-is-2019-a-new-story-for-em-assets-but-the-same-old-song-for-fx\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2019\/04\/10\/why-is-2019-a-new-story-for-em-assets-but-the-same-old-song-for-fx\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Why is 2019 a new story for EM assets, but the same old song for FX?\",\"datePublished\":\"2019-04-10T04:14:38+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2019\/04\/10\/why-is-2019-a-new-story-for-em-assets-but-the-same-old-song-for-fx\/\"},\"wordCount\":228,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2019\/04\/10\/why-is-2019-a-new-story-for-em-assets-but-the-same-old-song-for-fx\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2019\/4\/1570.jpg?fit=%2C&ssl=1\",\"keywords\":[\"emerging markets\",\"EnterpriseAM\",\"global economy\",\"monetary policy\",\"THE MACRO PICTURE\"],\"articleSection\":[\"THE MACRO PICTURE\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2019\/04\/10\/why-is-2019-a-new-story-for-em-assets-but-the-same-old-song-for-fx\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2019\/04\/10\/why-is-2019-a-new-story-for-em-assets-but-the-same-old-song-for-fx\/\",\"name\":\"Why is 2019 a new story for EM assets, but the same old song for FX? 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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":565162,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/03\/23\/the-em-policy-dilemma-threatens-fresh-bout-of-volatility\/","url_meta":{"origin":602936,"position":1},"title":"The EM policy dilemma threatens fresh bout of volatility","author":"enterpriseam admin","date":"23 March 2021","format":false,"excerpt":"The EM scramble to strike policy balance could lead to a wave of volatility: As the global commodities boom threatens to cause a surge in inflation, central banks in emerging markets are faced with an age-old dilemma: keep rates high to hold down prices or accommodate growth and pour more\u2026","rel":"","context":"In &quot;Macro picture&quot;","block_context":{"text":"Macro picture","link":"https:\/\/enterpriseam.com\/egypt\/category\/explainers\/macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/3\/528.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":599325,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/06\/25\/the-fed-hasnt-eased-yet-but-emerging-markets-are-already-feeling-the-benefits\/","url_meta":{"origin":602936,"position":2},"title":"The Fed hasn\u2019t eased yet but emerging markets are already feeling the benefits","author":"enterpriseam admin","date":"25 June 2019","format":false,"excerpt":"The Fed hasn\u2019t cut rates yet, but emerging markets are already feeling the benefits of its \u201cdovish\u201d stance: Emerging-market bonds and currencies posted their best week since 2017 last week after the US Federal Reserve and the European Central Bank gave their strongest hints yet that easing could soon be\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\/6\/2876.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":567209,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/01\/15\/fx-debt-pushes-em-debt-to-record-usd-72-5-tn-in-3q2019-iif\/","url_meta":{"origin":602936,"position":3},"title":"FX debt pushes EM debt to record USD 72.5 tn in 3Q2019 -IIF","author":"enterpriseam admin","date":"15 January 2020","format":false,"excerpt":"Foreign debt pushes EM debt to record USD 72.5 tn in 3Q2019: Total emerging market debt \u2014 including that of EM governments, households, non-financial corporates, and the financial sector \u2014 has hit a new record high of USD 72.5 tn in 3Q2019, according to the Institute of International Finance\u2019s (IIF)\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\/2020\/1\/612.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":564243,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/08\/18\/china-no-longer-an-em-says-blackrock\/","url_meta":{"origin":602936,"position":4},"title":"China no longer an EM, says BlackRock","author":"enterpriseam admin","date":"18 August 2021","format":false,"excerpt":"Could the world\u2019s second-largest economy finally shed its \u201cemerging market\u201d status? That\u2019s what the largest asset manager in the world thinks, telling the Financial Times that it\u2019s about time that investors take the Chinese economy seriously. BlackRock is recommending that indexes and investors raise their exposure to Chinese equities and\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\/2021\/8\/475.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":598393,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/05\/23\/trade-tensions-are-starting-to-take-their-toll-on-emerging-markets\/","url_meta":{"origin":602936,"position":5},"title":"Trade tensions are starting to take their toll on emerging markets","author":"enterpriseam admin","date":"23 May 2019","format":false,"excerpt":"Trade tensions are starting to take their toll on emerging markets: Emerging markets are beginning to feel the strain as escalating trade tensions cause global demand to weaken further, Hung Tran, non-resident senior fellow at the Atlantic Council, writes in the Financial Times. Many EM economies are dependent on exporting\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\/2688.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\/602936","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=602936"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/602936\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/602917"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/602937"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=602936"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=602936"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=602936"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=602936"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=602936"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}