EMFX remains heavy after risk......>

EMERGING MARKETS: EMFX remains heavy after risk rout

-Following the drubbing for LatAm currencies Monday (unsurprisingly led by ARS,

which closed lower by over 15% against the USD yesterday), EMFX more broadly

remains heavy as risk sentiment shows no sign of recovering. This has kept the

likes of TRY, ZAR, INR, KRW and others under pressure from the off. USD/INR

gapped higher at the open and remains well bid, prompting the highest print

since late February. Similarly, USD/TRY has broken back above the 200-dma, with

the August highs at 5.6285 the next target for bulls.

-ILS also underperforms, prompting USD/ILS to stage a modest uptick from last

week's cycle lows of 3.4688 after wires reported that the Bank of Israel may

resume intervention in currency markets if the ILS strength continues to push

inflation lower, citing BoI's Abir.

-Indian CPI is the sole release on the calendar, allowing markets and traders to

continue watching headlines to gauge risk sentiment for now. It's likely the

Argentinean market open will be carefully watched after the collapse on Monday.