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EEMEA’s taking a hit - BAML

FXStreet (Barcelona) - David Hauner, CFA EEMEA Strategist & Economist at Bank of America Merrill Lynch explains that Global macro remains unkind to EEMEA

Key Quotes:

"Data is surprising on the upside in the US and on the downside in Europe and EM, and the ECB remains unconvincing."

"In our view, the resulting mix of weaker commodities and European risk and a strong dollar is the worst possible mix for EEMEA. So for now, we maintain the cautious cross-asset view on the region that we have been advocating since the summer."

"In October, the collapse in global inflation expectations may allow for a bounce in EEMEA. Turkey would be the winner on such a theme, and our tactical trading models for FX (Compass30) and equities (EEMEA Equity Pulse) both like Turkey on a one-month horizon."

"We would caution though that the models do not "know" anything about ISIS. In FX, our model also likes ZAR and ILS. But we would expect such a relief to be technical and would ultimately want to fade it."

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