Oil sensitive FX cautious on.......>

EMERGING MARKETS: Oil sensitive FX cautious on Iran headlines

-Reports of a missile attack on Iranian oil tanker in the Red Sea helped prompt

some upside in crude oil futures, with WTI and Brent seen higher by as much as

2% ahead of the NY crossover, however there's been limited feedthrough so far

for EMFX. INR trades weaker (crude importer), however KRW trades stronger, with

hopes of a US/China partial trade deal clearly helping Asia-Pac FX.

-South African Rand is trading well so far Friday, with a broadly offered USD

against most EMs helping provide some impetus (the outsider being the TRY which

remains weighed by invasion issues and potential US sanctions). Elsewhere, some

economic proposals from Finance Minister Mboweni included a proposal for Eskom

to consider selling power stations to raise ZAR 450bn, roughly the same amount

as its debt - which has helped boost the currency.

-Mexican and Indian industrial production numbers are due as well as Russian

trade balance for August.