China FX finds no support from.....>

EMERGING MARKETS: China FX finds no support from US Treasury denials

-USD/CNH remains bid despite direct denials from the US Treasury that they are

considering a 'delisting' plan that would force Chinese companies off US

exchanges. The report last week, allied with a deterioration in both Chinese

manufacturing and non-manufacturing PMI had Chinese FX on the backfoot.

Similarly, a mainland holiday this week kept liquidity thin and volumes muted.

This should keep USD/CNH in its modest uptrend posted since mid-September, with

cycle/YTD highs at 7.1965 the ultimate target.

-Elsewhere, TRY is better bid, helping press USD/TRY to the lowest levels since

mid-August and make a decent test on the 200-dma support at 5.6301. The gains

have been helped by Turkey's economic statement this morning which upped GDP

growth targets to 5% from 3.5% next year and forecast a sharp slowdown in

inflation.

-South Africa's fiscal update is due Monday as well as Chilean industrial

production and Colombian central bank minutes.