Argentina broaden FX policy........>

EMERGING MARKETS: Argentina broaden FX policy response

-After burning through as much as $3bln in FX reserves since the market rout in

Argentina, the government have broadened their policy response by installing

capital controls in a further attempt to put a crutch under the ARS. The new

rules give Argentinean exporters 5 days to repatriate FX proceeds, with limits

also set on individual's purchase of USD. It's unlikely the move will instil

much confidence in the currency given the bond market's response (offshore bonds

fell to record lows this morning). MXN also trades weaker on the news,

underperforming broader EMFX space.

-Elsewhere, markets are more sanguine, with the climb in the USD to new cycle

highs not managing to put off a recovery rally in the TRY. USD/TRY continues to

find decent support at the 5.7990 100-dma, and any fall through here will shift

sights to the 50-dma at 5.6728.

-The ARS open will likely be watched carefully Monday, but the data schedule is

also busy. Mexican PMIs are due as well as Brazilian August trade balance and

manufacturing PMI data.