EMFX treads carefully -CNH holds...>

EMERGING MARKETS: EMFX treads carefully

-CNH holds the bulk of yesterday's gains early Friday as trade optimism

continues to spread. KRW has been a beneficiary, and is rising against all other

Asia-Pac FX. USD/KRW managed to close the week's opening gap as the KOSPI hit

the best levels since early August.

-INR is one of the better performers ahead of the close, helping press USD/INR

further from the week's best levels printed Monday at 72.2525. INR bulls look to

take out congestion support at 71.4525 and will be carefully watching for any

policy measures to support growth announced in the coming days.

-Argentinean newsflow should continue to dominate sentiment among LatAm FX. MXN

remains fragile in European hours and still sits uncomfortably close to the

multi-month cycle lows printed against the USD yesterday at 20.2580. S&P bumped

Argentina's rating into 'selective default' as the government looks to adjust

its debt burden, postponing payment on $7bln worth of bonds this year.

-Indian GDP data (exp. 5.7% Y/Y), South African trade balance and budget data

and Brazilian unemployment rate numbers take focus from here.