Bumpy ride for BRL -The slide in...>

EMERGING MARKETS: Bumpy ride for BRL

-The slide in global risk sentiment worked further against the BRL, boosting

USD/BRL to hit new multi-month (and YTD) high of 4.1941 Tuesday. However, in

rapid succession, the Brazilian central bank announced a hefty $1bln spot FX

auction, helping reverse the day's weakness and send USD/BRL tumbling. Whether

the BCB's intervention will become a common occurrence remains to be seen, but

it will give BRL bears a more challenging time in targeting 2018 highs at

4.2146.

-Elsewhere, TRY extended its spell of underperformance after a volatile session

as the US House confirmed their call for President Trump to sanction Turkey over

their S-400 missile system purchase from Russia. USD/TRY looks to close higher

for the 6th time in 8 sessions.

-ARS also resumed its downtrend despite the Argentinean central bank burning

through $250mln in reserves, the biggest intervention since the recent drop.

-Turkish economic confidence, the Israeli rate decision and the Mexican CB

inflation report are the highlights Wednesday.