Into the Breach Once More - EM/DM Leading Indicator Watch
Weekly Wrap - 31 July 2026
This week's charts and research highlights from Variant Perception.
Chart of the Week
UK LEIs continue to paint a clear picture of growth downside risks, while inflation fears look overstated.
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Into the Breach Once More - EM/DM Leading Indicator Watch [Video Discussion]
(July 24)
Speakers: Tian Yang (CEO & Head of Research) & Hugh Vuillier (Head of Client Relations)
Our global diffusions continue to paint a picture of muted but stable growth, alongside an inflation impulse that has peaked. While uncertainty surrounds the renewed flare-up in Iran, basic incentives should prevent both sides from overplaying their hands.
Within DM, we buy the dip in SONIA futures (SFIZ7), hold our short CHFJPY and step away from our bullish AUD bias. We are also waiting to sell the rally on EURSEK.
Within EM, we close our Brazil risk-parity exposure and stick with Indonesian equities that are rebounding after the flood of LPPL crash exhaustion signals in June. USDKRW is testing its 200-day moving average and could be a tactical long.
