Flash: Risk aversion in EM and commodity currencies to worsen - RBS

FXstreet.com (Barcelona) - Greg Gibbs, FX Strategist at RBS, makes a very good point noting that just the anticipation of QE being pulled by a small percentage is exposing big sell-offs in EM markets.

According to Gibbs: "A real problem now is that QE didn’t do much to improve global growth early in the year, and just a whiff of it being pulled is having surprising large consequences. We may be moving into a phase of more prolonged pessimism. This points to a range trading environment for major currencies, and building risk aversion in EM and commodity currencies."