Defiant SARB underpins buoyant.....>

EMERGING MARKETS: Defiant SARB underpins buoyant ZAR

-There were some outside expectations that the South African central bank could

trim rates at today's meeting, so their decision to keep rates at 6.50% prompted

some re-pricing among markets, allowing the ZAR to trade higher against most

others in EM. The bank also eyed unchanged rates as far out as the second half

of next year, providing plentiful opportunity for ZAR bulls to pressure USD/ZAR

to November lows and eye the 200-dma support at 14.5578.

-At the other end of the scale, BRL underperformed broader LatAm FX, with

markets softening after MNI reported that months of delays are seen for Brazil's

cost-saving law after resistance from civil servants and a political furore over

the President's decision to leave his political party to set up a new movement.

USD/BRL rallied to touch new four-year highs Thursday.

-The calendar is wholly empty for EMFX Friday, keeping focus on broader market

sentiment and, probably, the US-China trade dispute.