By the ECB’s and the BOJ’s own pronouncements, they were willing to further expand easy monetary conditions to stimulate growth in their jurisdictions. ECB President Mario Draghi even pledged to do “whatever it takes”.
So, in one part of the globe, you had the Fed poised to tighten monetary conditions, and in another, you had the ECB and BOJ committing to provide more liquidity as needed. This combination ushered the shift in market sentiment – capital flowed out of EME assets (the long-standing darling of investors) toward US financial assets.