News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • The Dow Jones and S&P 500 appear to be vulnerable as retail traders continue to buy into their pullbacks. This is shown via IGCS, which is typically a contrarian indicator. Get your market update from @ddubrovskyFX here:
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here:
  • GBP/USD extends the advance following the US Consumer Price Index (CPI) to trade to a fresh monthly high (1.3773). Get your $GBPUSD market update from @DavidJSong here:
  • RT @Live_News_Nick: #Bitcoin
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.55% 🇳🇿NZD: 0.52% 🇨🇦CAD: 0.06% 🇨🇭CHF: 0.03% 🇪🇺EUR: 0.02% 🇯🇵JPY: -0.51% View the performance of all markets via
  • The S&P 500 closed out the week in style, making a clear break above trendline resistance. Eyes now shift to the bulk of earnings season $SPX $SPY $ES_F
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.20% Silver: -0.83% Gold: -1.60% View the performance of all markets via
  • RT @EricBalchunas: The deed is done. Home free… $BITO
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.71%, while traders in GBP/JPY are at opposite extremes with 79.19%. See the summary chart below and full details and charts on DailyFX:
  • The past few weeks we have regularly mentioned that the SEC is likely to look kindly upon the few Bitcoin futures-based ETFs applications in its pending tray. Get your $btc market update from @nickcawley1 here:
Emerging Markets at Risk? Capital Flows Eyed After Fed, Powell

Emerging Markets at Risk? Capital Flows Eyed After Fed, Powell

Daniel Dubrovsky, Strategist

Emerging Markets, Capital Flows, EEM - Talking Points

  • Emerging market capital outflows have been noticeably cooling
  • Risks do remain, as highlighted by the Federal Reserve recently
  • MSCI Emerging Markets Index stalling above key 61.8% Fib?

Recent optimism in global financial markets has meant that the aggressive pace in capital flowing out of emerging markets has been cooling. Earlier this year, the introduction of lockdown measures across the world as the coronavirus spread sank stocks. At one point, cumulative capital outflows from developing economies surpassed levels seen during the global financial crisis by twice.

On the chart below, the MSCI Emerging Market Index (EEM) can be seen closely following a proxy of developing capital flows. If sentiment remains on the current upward path, this could continue pushing equities from countries such as India, Mexico and Brazil higher. Not to mention that the haven-oriented US Dollar could keep being pressured to the downside.

However, risks remain. The Federal Reserve left rates unchanged near-zero levels and signaled the intention to keep borrowing costs depressed for some time. Meanwhile Chair Jerome Powell left the door open for vigilance and caution. He mentioned that a full recovery is ‘unlikely to occur until people feel safe’. A second wave of the coronavirus may very well keep consumers cautious about discretionary spending.

Emerging Markets Index Versus Capital Flows

MSCI Emerging Markets Technical Analysis

From a technical standpoint, the EEM remains in an uptrend. Prices pushed higher after closing above key falling resistance from the beginning of this year. Since then, the EEM has struggled to make meaningful progress above the 61.8% Fibonacci retracement at 40.12. Prices are sitting just under what may be immediate resistance at 41.97. A turn lower may send the EEM towards rising support from the March bottom.

MSCI Emerging Markets Index – Daily Chart

Emerging Markets at Risk? Capital Flows Eyed After Fed, Powell

EEM Chart Created in Trading View

--- Written by Daniel Dubrovsky, Currency Analyst for

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.