Curnolftive. EUR bn 930
EUR be a=eValLedon gargaa
1.200 ImoHaws 400
• EUR/EM crosses have been realizing well above
USD/EM but implied volatilities are quite similar 1.00) - M1IIP ... recommend buying 6m EUR/EM - USD/EM
900 • .1.900
volatility spreads in TRY, MXN. INR
400 -1,500
• For a directional view, express our EM 2016
200 -1.700
Outlook short ... premium in USD/EM, negative vol
volatility in EMFX. Since EUR/USD is negatively !premium in EUR/EM as flight to EUR safety not priced
correlated to equities (acting as risk proxy