Reversal in risk sees EMFX.........>

EMERGING MARKETS: Reversal in risk sees EMFX crumble under pressure

-The likes of ZAR, TRY and LatAm FX came under considerable pressure Wednesday

as risk reversed in NY hours as the US 2yr10yr yield curve flagged recession

risk by inverting for the first time since 2007. This sapped any momentum EMFX

picked up in the latter half of Tuesday trade, with offshore Asian NDFs also

feeling the strain.

-ZAR was one of the poorest performers, falling against most of its EMFX

counterparts as bulls re-targeted the recent cycle highs at 15.4663. A break

above here opens the 2019 extreme at 15.6958.

-ARS found little consolation in the policy measures announced by President

Macri in an attempt to reverse the recent market rout, as fiscal support

measures targeted at those on lower incomes were rejected, prompting the

opposition leader to warn that the country risks ending up without any FX

reserves. USD/ARS continues to hold close to 60.00.

-The Banxico rate decision, Indonesia trade balance, Israeli CPI and Colombian

GDP are the calendar highlights Thursday.