An EM rout headlined on Thursday as TRY,......>

FOREX: An EM rout headlined on Thursday as TRY, ZAR, BRL, MXN & particularly ARS

sold off sharply, with intervention from the Brazilian & Argentinian central

banks, as well as an emergency 1500bp hike from the Argentine central bank doing

little to quell fear, although the interventions did allow the respective

currencies to move back from worst levels vs. USD. JPY was the sole G10 currency

to outperform the USD, USD/JPY last ~Y111.00.

- Late reports suggested that U.S. President Trump backs $200bn China tariffs as

early as next week. Trump also noted that the U.S. is studying if it should

label China a currency manipulator. This came after pre-NY trade positive

headlines, as Politico reported that the EU is willing to scrap industrial &

auto tariffs with the U.S, although Trump stressed that the offer on car tariffs

wasn't good enough late in the day.

- AUD and NZD weakness persisted following poor domestic data from both AU & NZ.

AUD/USD remains uncomfortably close to the YTD low ($0.7203).

- Focus Friday turns to official China PMI data, the BOK MonPol decision, EZ CPI

& Chicago PMI.