FX: Risk on, risk off, risk on, risk off.../Rates and yields: strong rand pushes down South African yields

- FX: Risk on, risk off, risk on, risk off... "Emerging Markets FX markets have been relatively directionless the over the past week, with about half of the EM currencies that we cover appreciating against EUR and USD and the other half depreciating. The overall theme has no doubt been whether the G3 economies are heading for a double-dip or whether the global recovery will continue. Lacking a decisive answer to this key question, the EM FX markets have mostly drifted sideways."

- Rates and yields: strong rand pushes down South African yields "It has also been remarkably calm in the EM fixed income markets. The most interesting “story” has certainly been the decline in South African yields, which have been driven down by the continued strengthening of the rand. That said, we do not see much potential for South African yields to fall further."

DenDanske Emerging Markets Briefer 20100915