As usual, the media starts paying attention to any issues, like the emerging market currency sell off, near the end of the trend

As usual, the media starts paying attention to any issues, like the emerging market currency sell off, near the end of the trend. In fact, currencies like Turkish Lira, Indian Rupee, Brazilian Real and South African Rand have been in a downtrend against the USD since 2011. That means these currencies have been weakening for almost three years, yet only in the last few months has the attention turned towards them. Most of these currencies have now either re-tested or exceeded their 2008 GFC lows. That is not to say that these currencies will not continue to weaken further, however their cyclical downtrends are prolonged and it might be a bit too late to short them blindly right now. Furthermore, US Dollar has recently entered terminal blow off phase against some of these currencies, indicating panic. This is usually witnessed near the end of the trend. Read more: (VIEW LINK)