Busy session across CEE............>

EMERGING MARKETS: Busy session across CEE currencies

- RUB had a volatile session, weakening sharply as IFX reported on the

resignation of the Russian government, leaving President Putin to propose an

entirely new cabinet and a relatively marginal figure as PM. This may be one of

the clearer signals that intends to take over as PM, or another senior

parliamentary office, at the end of his presidential term. USD/RUB rallied to

touch 61.7915 before fading.

- The usually quiet CZK had a firm session Wednesday, rising to the best levels

against the EUR since 2012 and outperforming broader EMFX as markets continue to

speculate that the central bank will begin tightening policy. The next rate

decision is due on February 6th.

- All focus turns to central banks Thursday, with decisions due from both the

Turkish and South African central banks. Turkey are seen trimming rates further

by 75bps to 11.25% while South Africa are seen keeping policy unchanged.

Nonetheless there are some outside expectations of further easing from the SARB.

Polish inflation is the data highlight.