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EMFX outperforms despite equity weakness......>

FOREX
FOREX: EMFX outperforms despite equity weakness
-EMFX (most notably TRY, ZAR and INR) outperformed Monday, but there was little
sign of a return of risk-on sentiment as equities retreated and as USD/JPY
remained contained.
-TRY gained as the country's banking watchdog clamped down further on
speculation by imposing an extended settlement delay to FX purchases of over
$100,000. This helped cement the move lower in USD/TRY, but last week's lows
won't come under threat without a further move higher in the TRY. In South
Africa, expectations that the incumbent finance minister Mboweni will retain his
post helped underpin a decent ZAR rally, while another expected victory for the
incumbent in India helped prompt a rally across Indian assets.
-G10 FX was notably quieter, with little price action throughout European or US
hours as a light calendar helped squash volatility. USD/JPY traded either side
of the Y110 while US equity futures held below the 50-dma. Attention turns to
RBA minutes, Eurozone consumer confidence, US existing home sales and speeches
from RBA's Lowe, Fed's Powell, Evans & Rosengren and ECB's Visco and Guindos.

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