Research Team at BBH, suggests that the EM is benefitting from a supportive global liquidity outlook and they believe that this bounce in risk sentiment remains fragile, and that the eventual re-pricing of Fed tightening risks will be a big hurdle for EM. Key Quotes “As usual, specific EM country risk remains in play. Brazil’s political outlook may become clearer after the PMDB meeting, though we caution investors not to get too bullish with regards to impeachment. China offers its first glance at March with the PMI readings. Korea and Brazil report the first March trade readings, and little relief is seen. China reports official and Caixin March manufacturing PMI readings Friday. The official manufacturing PMI is seen at 49.3 vs. 49.0 in February, while the Caixin measure is expected at 48.3 vs. 48.0 in February. For now, markets seem comfortable with China’s macro outlook, especially since policymakers have signaled that further easing is likely this year.” For more information, read our latest forex news.