Emerging-market rally seen unstoppable as traders turn to Powell

There’s so much positive momentum in risk assets, it’s difficult to see what could stand in the way of the emerging market (EM) rally, at least in the coming days.

The stronger-than-forecast May US jobs report and weekend agreement by Opec+ to a one-month extension of its record output cuts may add to the optimism about the prospects for a global economic recovery, underpinning risk assets. JPMorgan’s measure of implied volatility for EM currencies had its biggest weekly drop since 2011. 

 

“While there are still