Biggest cut on record not enough...>

EMERGING MARKETS: Biggest cut on record not enough to dent TRY

-TRY was the firmest currency across EMFX following the mammoth 425bps cut to

their one-week repo rate. While the slashing of interest rates exceeded

consensus the forecasts were flimsy at best, with the street looking for even

larger cuts. This left the 100- and 50-dma resistance levels in USD/TRY

untouched at 5.7725 and 5.8047 respectively, which remain the first targets for

USD/TRY bulls. The rate cut today was also not enough to deter those looking for

decent carry, with CIBC re-affirming their long TRY/JPY trade recommendation.

-Elsewhere, ZAR sits weaker as Moody's issued a broadly negative judgement on

the government's plans for Eskom, with the new funding blueprints seen worsening

the deficit materially. USD/ZAR broke above 14.00 to hit the week's highs on the

news.

-Focus turns to the Central Bank of Russia rate decision Friday, with the

majority of analysts eyeing a 25bps rate cut after last year's tightening

successfully tamed inflation.