In a note to clients today, BNPP argues that while the EUR has benefited from turmoil in emerging markets, the longer-term impact of selling pressure on EM currencies and falling EM reserves is bearish for the EUR. "EM FX reserves surged during Fed QE in 2008-2014 with China alone accumulating around USD 2trn in reserves during that period. The impact of the EM currency sell-off on the G10 has been to boost demand for the EUR and other G10 currencies as EM central banks diversified their USD purchases. In other words EM central banks maintained weaker currencies and larger trade surpluses at the expense of ... (full story)