PLN has best session in months.....>

EMERGING MARKETS: PLN has best session in months as ECJ rules out worst case

-Both the PLN and domestic Polish bank equities held firm gains into the close

as the banking sector avoided the worst-case scenario from the ECJ ruling on CHF

mortgages. This scenario would have seen the mortgage converted at unfavourable

CHF/PLN rates and also retain interest payments linked to CHF money market rates

and not the more punitive PLN rates - leaving domestic banks out of pocket.

EUR/PLN fell well below the 50-dma on the news and looks to make a decent test

on the mid-September lows.

-Attention turns to Friday's RBI rate decision. The bank are seen trimming rates

by 25bps, although there's a fair amount of discrepancy around analyst

estimates. Slipping core inflation numbers give the bank ample justification to

trim policy, and the RBI are also likely to cut growth forecasts for 2020. The

depth of these downgrades could signal further policy accommodation beyond this

month and will be a focus for markets beyond the initial decision.

-Russian CPI data is also due Friday.