Emerging Market Massacre Continues - Latam FX At Weakest In History

All the pesos are getting pounded - Argentine, Colombian, Chilean, and Mexican - but the 'best indicator of EM turmoil' - the Brazilian Real - is really suffering...

But the Rand is the worst...

As the Emerging Market massacre continues to accelerate... this is the worst start to a year since at least 2010...

Amid an incessantly strengthening USDollar.

And the collapse of the EM FX carry trade...

Latin American currencies just keep selling off even as commodities, the region's main exports, rise. The LACI index is at the lowest since January 2016...

And the lowest relative to emerging markets peers ever...

It's not just FX, Emerging Market Debt is suffering its worst year since at least 2012...

Bloomberg's Eric Balchunas points out more evidence of calm before EM ETF bloodbath is traders (EEM) are bailing now, and allocators (IEMG) while not yet leaving haven't added inflows at all for 20+ days straight...

Roughly translated - the professionals are dumping to retail (while we have previously noted just how exuberantly the professionals are pitching this 'dip' as a buying opportunity in EM)...

And Bloomberg's Lisa Abramowicz points out that the biggest local-currency emerging-markets ETF has lost nearly 20% of its assets since the beginning of April, dropping to $6.5 billion from $7.9 billion.

The storm before the bigger storm.