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Forex Flash: EM mom(entum) knows best - Nomura

FXstreet.com (Barcelona) - Nomura strategist asks, do returns come from relative value or USD crosses in EM momentum?

He begins by asking, “In EM does momentum come from USD crosses or is it something we observe at a relative value level?” Throughout his studies and using his gradient-based momentum trading rule, he finds that on the whole, trading USD crosses in EM in a trend-following manner often has higher returns than trading relative value crosses in EM. He believes that this suggests that EM momentum as a phenomenon is stronger in USD EM crosses compared with relative value EM.

Forex: EUR/USD falls on weakening PMI services in Europe

The EUR/USD was holding around 1.2850 until volatile moves in the Yen sent the pair down to 1.2830 area. However, the publication of PMI Services data by Markit triggered a selloff below 1.2800 psychological level, to 1.2785 low as of writing. The French and German figures were expected to fall from 43.7 to 41.9 and 54.7 to 51.6, but actual March PMI Services data points to a drop to 41.3 to 50.9, respectively.
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United Kingdom Markit Services PMI improves to 52.4 in Mar from 51.8 in Feb

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