Calmer global equities soothe......>

EMERGING MARKETS: Calmer global equities soothe EMFX

-The likes of ZAR, PLN, COP and broader EMFX space looked considerably calmer

Friday as market tensions eased and global equity markets recovered. Despite the

largely improving spot rates, markets clearly remain unnerved, underpinning

sticky implied vol rates in the short-end and an options market that continues

to hedge against EMFX weakness.

-After several sessions of weakness, a better-than-expected turnout from July

CPI helped the PLN rise to the top of the pile, pressing EUR/PLN back below 4.34

and retracing much of this week's move.

-ZAR also traded well, bouncing off the week's lowest levels and gaining against

the USD for a second session. USD/ZAR bears need momentum to pick up further and

close below the 15.0870 level for direction, which would turn the outlook much

more positive.

-Thai GDP and the Bank of Indonesia rate decision are the calendar highlights

for the coming week, but it's more likely the focus will remain on the Fed's

policy symposium in Jackson Hole, Wyoming.