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Free AccessProximity to fresh tariffs.........>
EMERGING MARKETS: Proximity to fresh tariffs leaves CNH nervous
-After a decent Thursday, CNH retraced somewhat on Friday as markets clearly
remained unnerved by the proximity of Trump's planned tariff hike due on Sunday.
The 15% levy threat remains in place, leading markets to sell China FX before
the long weekend, keeping USD/CNH in range of cycle highs at 7.1926. Trump's
Twitter feed will be carefully eyed despite the US holidays.
-LatAm FX diverged materially Friday, with ARS resuming its downward trend after
a decent recovery Thursday, while BRL, CLP and COP rallied sharply. Nonetheless,
USD/BRL and USD/MXN remain uncomfortably close to recent cycle highs, meaning
there's little chance of a firm bullish breakout for LatAm FX just yet.
-ZAR's end-of-month rally was impressive on a two-day basis, but the currency
remains on track to confirm a dismal month, dropping close to 6% against the
greenback. For the outlook to improve, ZAR bulls need to press the currency
through Fib support at 14.8556 and the 50-dma at 14.5698.
-Global PMI data, Turkish, South African and South Korean GDP and rate decisions
from Chile and Russia should keep markets busy.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.