A Truce in the Currency War and rebound in Oil provide a welcome lift to EM

Two of the biggest protagonists in the Currency Wars, namely the ECB and BoJ, have taken a step back over the past few weeks. This is very good news. In Japan, the BoJ took the unprecedented step and went for negative rates which led to Yen strength. In Europe the ECB decided to also act boldly in early March, but decided to use the credit channel which also served to lift the Euro.