Fed rate cut not enough to stir....>

EMERGING MARKETS: Fed rate cut not enough to stir EMFX spirits

-There were few standouts in EMFX Wednesday, with the Fed's hawkish 25bps rate

cut failing to ignite any rally in high beta FX. This left EMs largely

underwater against the greenback, with few standout performers.

-TRY/ZAR is building on the close above the 200-dma yesterday, helping nudge the

cross to the best levels since mid-June as bulls now target next resistance at

2.6094.

-Early strength in the MXN followed a generally favourable Q2 GDP release (+0.1%

vs. Exp. -0.2%), but this was wholly sold off following the Fed decision.

Asia-Pac GDP releases were more mixed after the Tokyo close: Hong Kong GDP

suffered, whereas Taiwan GDP beat expectations. 

-The imminent Brazilian central bank rate decision takes focus, with the bank

expected to emulate the Fed with a 25bps rate cut. South Korean inflation and

trade balance, Asia-Pac PMIs and the Czech central bank rate decision take focus

Thursday.