Latin American currencies lead the way
The epicenter of the coronavirus epidemic is in Latin America at the moment, but the market says it is going to die out and that the heyday is coming.
The top of the EM ranking is now filled with LatAm currencies, led by some of the most affected countries.
Trade is clearly back to normal now but I’m starting to think it could be even better than that. It’s back to normal, but it will come with ultra low rates and super easy tax policies.
The peso also wishes to benefit from the additional advantage of American reshoring. Factories leaving China will not return to the United States, they will go to Mexico.