CNH underpinned by scrapping.......>

EMERGING MARKETS: CNH underpinned by scrapping inbound investor limits

-CNY was one of the better performers across EMFX, shrugging off somewhat

irrelevant inflation data as markets focused on reports that China are getting

rid of quotas on approved foreign institutional investors. The news helped

European equity markets find a bottom, somewhat supporting risk across the

board.

-Elsewhere, the ZAR moves from strength to strength, with ZAR bulls facing their

first hurdle in the 50-dma at 14.6677. Analysts at Citi yesterday shifting their

outlook to more positive on the ZAR, going long the currency ahead of important

fiscal policy adjustments that may be forthcoming.

-TRY remains offered, with USD/TRY bulls nearing the 100-dma resistance at

5.7943. Speculation the country could face further US sanctions continues to

weigh.

-South African manufacturing production for July is the sole release on a light

data calendar for EMFX.