Research Team at BBH, suggests that today’s bounce in EM supports our view that Friday's price action in EM FX was simply profit-taking ahead of the weekend, rather than the resumption of overall negative market sentiment. Key Quotes “We remain constructive and believe that the global backdrop remains conducive for risk, at least near-term. China concerns are on the back burner, while markets are still skeptical about the prospects for Fed tightening. Commodity prices, which are potential spoilers to the risk rally, have rebounded today after ending last week on a sour note. Country-specific EM risk remains alive and well, however. Turkey in particular may be in focus, with markets likely to react badly to lack of central bank tightening this week. Add in heightened political risk after the Ankara bombing. Brazil offers the usual smorgasbord of horrible fundamentals and political risk, with inflation and fiscal data this week likely to remind markets of ongoing downgrade risk. China might be a non-factor this week, with no data reports on the horizon. As long as China’s FX and equity markets behave, global market sentiment should hold up.” For more information, read our latest forex news.