China's message of peace helps.....>

EMERGING MARKETS: China's message of peace helps buoy EMFX

-CNH traded well throughout US hours, as earlier comments from China's MOFCOM

(need to discuss removing new US tariffs, not escalating) reverberated

throughout markets. This brought USD/CNH nearer to closing the week's opening

gap, with markets turning focus to 7.1315 (Friday's close)

-ZAR had a particularly strong session, recovering well off the day's lows which

came into close proximity to the multi-month lows printed in mid-August. General

risk sentiment toward EMFX was positive following the China headlines, with ZAR

and RUB standing out.

-LatAm FX more broadly managed to shrug off the increasing fragility of their

Argentine neighbours. BRL outperformed on better than expected GDP data, helping

boost the likes of CLP and COP. ARS remains under pressure, however, with the

BRCA burning through more FX reserves as they attempt to slow the decline of the

currency.

-The South Korean central bank are seen keeping policy unchanged Friday. Hong

Kong retail sales and Indian GDP data are also due.