PLN under pressure as NBP shrug....>

EMERGING MARKETS: PLN under pressure as NBP shrug off strength in wages

-PLN performed poorly throughout, with the Polish central bank playing down the

prospect that high inflation and higher levels of minimum wage could prompt the

Bank from reverting away from its commitment to low interest rates. EUR/PLN

bounced off recent lows, returning back above 4.34 in response.

-BRL traded well throughout the session, keeping the September lows of 4.0493 in

USD/BRL under pressure, as retail sales data surged well ahead of forecast

(complimented by some decent upward revisions to previous data). Any fall

through the September low support opens 4.0124 and the 50-/100-dmas at

3.9390/3.9345.

-Thursday will likely prove to be the busiest session of the week for EM

currencies, with the ECB decision due as well as an expected 275bps rate cut

from the Turkish central bank, although analyst views vary widely: some even

forecast rate cuts as deep as 400bps. The Malaysian rate decision (exp.

unchanged), South African mining production, Indian CPI and industrial

production data are also due.