PLN sinks as Polish banking........>

EMERGING MARKETS: PLN sinks as Polish banking sector risk shoots higher

-PLN underperformed both the USD and broader EMFX from the off on Friday.

Reports that the European Court of Justice are set to rule on the Polish bank FX

loans saga on October 3rd - roiled Polish equities and Fed through well to the

currency. Friday's moves in PLN are a sign the market's become increasingly

concerned the Polish banking sector is to be exposed to significant claims from

those stuck with CHF mortgages pre-2015. EUR/PLN rallied sharply back to levels

not seen since early September and well within range of the year's highs at

4.3995.

-At the other end of the scale, INR traded well, with India's aggressive fiscal

easing measures announced Friday being welcomed by markets. The announcement of

corporate tax cuts and a series of sales tax measures helped onshore INR rally

to one month highs against the USD. Offshore trade extended the move, with NDF

outrights indicating another strong INR open on Monday.

-Rate decisions from Colombia, Mexico, Hungary, Thailand, Czech Republic and the

Philippines should keep markets busy next week.