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Sep 04, 2018
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Emerging Market Currency Roil Deepens While Dollar Extends Gains

Emerging Market Currency Roil Deepens While Dollar Extends Gains

Emerging market currencies are getting crushed even as the rally in U.S. dollar continues to firm up.

Declining for the fifth time in six days, the MSCI Emerging Markets Currency Index plunged to its lowest level in more than a year. The rand, lira, Argentine peso among other currencies extend declines amidst their respective domestic economic chaos - including South Africa’s land-reform bill, Turkey’s high inflation concerns and Argentina's fiscal uncertainties .

The U.S. dollar, on the other hand, rose for the fourth day, in a rising interest rate environment and following U.S. President Donald Trump’s threats to impose tariffs on an additional $200 billion on imported Chinese goods by Thursday.

Related Ticker: EEM

Contributor

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.


EEM in upward trend: price expected to rise as it breaks its lower Bollinger Band on November 05, 2026

EEM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 38 of 42 cases where EEM's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 90%.

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where EEM's RSI Indicator exited the oversold zone, 18 of 23 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 78%.

The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 43 of 58 cases where EEM's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 74%.

The Moving Average Convergence Divergence (MACD) for EEM just turned positive on November 11, 2026. Looking at past instances where EEM's MACD turned positive, the stock continued to rise in 41 of 49 cases over the following month. The odds of a continued upward trend are 84%.

Following a +5.13% 3-day Advance, the price is estimated to grow further. Considering data from situations where EEM advanced for three days, in 273 of 322 cases, the price rose further within the following month. The odds of a continued upward trend are 85%.

Bearish Trend Analysis

EEM moved below its 50-day moving average on October 08, 2026 date and that indicates a change from an upward trend to a downward trend.

The 10-day moving average for EEM crossed bearishly below the 50-day moving average on October 14, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 12 of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 67%.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where EEM declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 80%.

The Aroon Indicator for EEM entered a downward trend on November 11, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.

Notable companies

The most notable companies in this group are PDD Holdings (NASDAQ:PDD), H World Group Limited (NASDAQ:HTHT), Tencent Music Entertainment Group (NYSE:TME), Vipshop Holdings Limited (NYSE:VIPS), TAL Education Group (NYSE:TAL).

Industry description

The investment seeks to track the investment results of the MSCI Emerging Markets Index. The fund generally will invest at least 80% of its assets in the component securities of its underlying index and in investments that have economic characteristics that are substantially identical to the component securities of its underlying index. The index is designed to measure equity market performance in the global emerging markets. The underlying index includes large- and mid-capitalization companies and may change over time.

Market Cap

The average market capitalization across the iShares MSCI Emerging Markets ETF (EEM) ETF is 19.52B. The market cap for tickers in the group ranges from 208.41M to 118.18B. PDD holds the highest valuation in this group at 118.18B. The lowest valued company is SAR at 208.41M.

High and low price notable news

The average weekly price growth across all stocks in the iShares MSCI Emerging Markets ETF (EEM) ETF was 1%. For the same ETF, the average monthly price growth was -6%, and the average quarterly price growth was -4%. AUGO experienced the highest price growth at 12%, while LEGN experienced the biggest fall at -14%.

Volume

The average weekly volume growth across all stocks in the iShares MSCI Emerging Markets ETF (EEM) ETF was -30%. For the same stocks of the ETF, the average monthly volume growth was 7% and the average quarterly volume growth was -44%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 49
P/E Growth Rating: 70
Price Growth Rating: 57
SMR Rating: 49
Profit Risk Rating: 79
Seasonality Score: 11 (-100 ... +100)
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