PBoC cuts rates, boosting risk.....>

EMERGING MARKETS: PBoC cuts rates, boosting risk appetite

-The CNH rally extended into a fourth session as, again on hopes for a

harmonious outcome to US-China trade talks, before the rally was somewhat

stalled by the PBoC cutting their reserve requirement ratio by 50bps, with

qualifying banks getting a further 50bps on top of that. The sentiment filtered

through well into EMFX, with risk appetite getting a decent bid.

-RUB trades somewhat stronger ahead of the Russian central bank rate decision

later today. The CBR are seen cutting rates by 25bps to 7.00%, with focus

resting on the post-decision statement, which many believe will drop heavy hints

of further cuts headed into the end of 2019. This may be accompanied by heavy

downward revisions to inflation projections.

-USD/TRY recovered ahead of the close yesterday to finish north of the 5.6657

50-dma. Gains have extended early Friday, with bulls now eyeing 5.7303 as the

first target.

-Brazilian and Chilean inflation data is also due.