- Citi Warns The Greatest Monetary Experiment In The History Of The World Is Being Wound Down!
by Tyler Durden, www.zerohedge.com
As Citi’s Tom Fitzpatrick, a number of local market currencies are increasingly coming under pressure and look likely to fall even further. Whether this will turn into a dynamic as severe as 1997-1998 in unclear; however, at minimum Citi believes the “change in course” by the Fed in December (guided since May) has become a “game changer” for the EM World. The greatest monetary experiment in the history of the World is being wound down. In a globally interlinked economy it would be “naïve” to believe that the big beneficiaries of this “monetary excess” in recent years would be immune to the “punch bowl” no longer being refilled constantly.
Via Citi FX Technicals,
A look at some Subemerging currencies of interest.
There are a number of local market currencies that are increasingly coming under pressure and look likely to fall even further:
* In Latam we look at BRL,MXN,CLP and COP as well as the LACI (Latin America currency index)
* In Asia we look at PHP,KRW,SGD,IDR, TWD and MYR as well as the ADXY (Asia Dollar index)
* In CEEMA we look at TRY, ZAR and RUB
USDBRL long term chart continues to look ominous. (BRL is 33% of the LACI) (top of post)