Familiar stories continue to.......>

EMERGING MARKETS: Familiar stories continue to roil markets

-As the low level preparation talks in US/China trade negotiations have already

begun, reports continue to swirl speculating on what the outcome could be.

Bloomberg this morning reported that China are open to a partial trade deal at

this week's meetings despite the blacklisting of Chinese tech firms that took

place earlier this week. However, a condition would be that no further tariff

increases are levied on Chinese goods headed to the US. CNH, global equities and

high beta FX surged on the release, helping pressure USD/CNH down back through

the 7.13 mark.

-Elsewhere, wires confirmed the entry of Turkish troops into Syria this morning,

making a clash with US-allied Kurdish forces likely in the coming days. TRY fell

on the news, boosting USD/TRY back up towards the 5.85 mark, keeping bullish

focus on the early September highs at 5.8621.

-Mexican, Brazilian and Russian inflation data are due as well as the minutes

from the most recent Hungarian central bank decision.