Commodities and EMFX – the Big Breakdown

I wanted to quickly share these two charts as I think they are really important and it’s something I’ve been speaking with clients about a lot in recent weeks and months. The charts come from the weekly Global Cross Asset Market Monitor (get in touch for details), and simply put – they show a complete breakdown in market breadth for both emerging market currencies and global commodity prices. What’s interesting from a tactical standpoint is how EMFX has broken down (for good reason, as I flagged in a previous report) yet commodities have not quite caught up (or down) to this yet. We all knew that Fed tightening would present challenges for global markets, and this right here is the pointy end of that…