The Disconnect Between EMFX and Hawkish Central Banks

One of the more interesting things in FX right now is the disconnect between fairly hawkish central banks, rising front end yields and FX. This of course has become heightened recently as we have seen a fairly broad rally in USD over the past few weeks. However, even zooming out year to date, we have had non trivial shifts in monetary policy, much higher front end yields and for many, their respective currencies have still weakened this year.