1 August 2016
EM ended last week on a firm note, helped by the weaker than expected US Q2 GDP report as well as the small bounce in oil. With the RBA and BOE expected to ease this week, the global liquidity backdrop remains favorable for EM and “risk.” US jobs report Friday will be very important for EM going forward.
We get our first glimpse of the Chinese economy for July with the PMI readings this week. EM CPI data this week should underscore the low global inflation theme. More EM central banks are likely to join the easing parade in H2.