“As we were not positioned for a summer carry trade in local rates or FX — we are underweight EM rates and market weight (neutral) EM FX — we are not adjusting recommendations at this stage,” JPMorgan said in a note to clients.
“EM markets had been gearing up for a summer of low-volatility carry with a grind better in recent weeks, so the somewhat hawkish Fed shift has put this at risk.”
