Forex Strategy Video: Why Emerging Markets are Important to FX Trading
• Emerging Markets offer good trading opportunities, but it is also a great barometer for risk trends
• With the greatest rates of return and comparable risks, EM is typically the first to react to risk
• We discuss the different groupings to watch: BRICS, news-worthy and the steady EM markets and currencies
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So far in 2014, Emerging Markets have stirred enough fear to put the market on alert of a global risk reversal and place the group's health at the top of the G20's agenda. The developing world's financial system represents one of the leading barometers for the ebb and flow of market- and asset-wide investor sentiment. In this capacity, it can also present us with volatile trade opportunities. So what is the Emerging Market saying about 'risk' trends now, and what do the trade setups look like? This is the subject of our weekend Strategy Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.