Excerpt from: Forex Forecast
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| October 23, 2008 | | Emerging markets to suffer on risk aversion, slow global economic growth | Emerging market currencies are trending downward in the forex trading forecast. Nearly all of the Asian currencies (except the yen, which isn't an emerging market currency) are dropping right now in forex trading.
Emerging market currencies from the South Korean won to the Taiwan dollar are falling prey to the global economic slowdown. Exporting economies are going to be sending fewer goods out, and that means less income.
On top of consumer related issues, emerging market currencies are also suffering because of risk aversion. Emerging market assets are considered somewhat risky in the best of times. These are far from the best of times, as investors are looking toward "safer" currencies and shunning the emerging markets.
| Topic Tags: currencies forex trading, emerging market currencies, emerging markets, forex trading forecast, global economic slowdown, South Korean won, Taiwan dollar | |
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