We might have to start an “x is less terrifying” series.
Consider this on EM FX…
That’s HSBC’s FX team charting their argument that October’s rally in EM FX is the market “finally beginning to realise that the conditions needed to fuel a 1990s-style EM FX crisis – namely, high inflation and fixed exchange rates – are not present today”.
Previously, btw, the fourth point on that chart would have been “fears of inflation” without any caveat, number five would have read “capitulation” and it would have only gotten uglier from there. Something like this, if you will:...MORE