Market ponders where next for......>

EMERGING MARKETS: Market ponders where next for CNY

-CNY comfortably held its position at the bottom of the EMFX table throughout US

hours, while the currency paid little attention to further barbs courtesy of

Trump's Twitter account. CNY vols remained well bid, helped by a surge in call

buying - although puts also traded in size. The implied pricing for USD/CNY to

touch 7.50 by the year's end hit 19%, a chance that was gauged at less than 1%

this time last week.

-The dent to EMFX risk appetite worked its way into ZAR and TRY, with ZAR coming

close to testing the 15.00 level for the first time since early June. A break

above here would put USD/ZAR at YTD highs. For USD/TRY this prompted the pair to

fail a convincing move below the 200-dma, which remains strong support going

forward.

-The EM data calendar is light Tuesday, with markets holding focus on tensions

in both Hong Kong and Kashmir, as well as gearing for rate decisions from India

and Thailand Wednesday.