PLN rollercoaster as ECJ avoids....>

EMERGING MARKETS: PLN rollercoaster as ECJ avoids worst case for banks

-PLN markets were comfortably the most active this morning as markets eyed the

final ruling from the European Court of Justice on CHF mortgages sold by Polish

banks. Both the PLN and domestic Polish banks hold onto modest gains as with the

banking sector seemingly avoiding the worst-case scenario that courts could

force loan conversions from CHF to PLN at rates below current values. A scenario

in which the mortgages would be converted at a poorer rate while retaining

interest payments linked to CHF money market rates and not the more punitive PLN

rates.

-Elsewhere, ZAR continues to recover and is the best performer in EMFX for a

second session on yesterday's announcement of further economic reforms.

-Mexican consumer confidence and Chilean retail sales are the calendar

highlights. The Romanian rate decision is also due, expected unchanged at 2.5%.