Main takeaways:
We don’t like assets overly sensitive to USD strength
The Carry currencies will start to lose tailwinds soon
Still plenty of cheap opportunities in pockets of EM- we will likely add trades here in the coming days on our live Portfolio, see here

Read below for our overall perspective on EM’s in this week’s Central Bank Bonanza

Eurozone numbers keep going from bad to worst and funds keep stagging to their USD bear bets. Despite having burned our fingers on the timing we still think that markets will be in for quite an awakening in this space as the recessionary data keeps coming in. After the horrendous PMI prints in Germany in particular its perhaps worth zooming out into the bigger picture here:

Chart 1: PMIs across the world

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