Sanguine markets take..............>

EMERGING MARKETS: Sanguine markets take opportunity to consolidate

-After a relatively volatile Tuesday, Asia-Pac and EMFX currencies are more

peaceful Wednesday, allowing traders some time to consolidate recent moves. As a

result, INR is coming off recent highs as TRY regains some lustre. The more

solid footing follows a further containment in Chinese FX, as both the CNH and

CNY failed to touch fresh cycle lows against the greenback. For TRY to confirm

any decent recovery here, USD/TRY needs to drop back below the 100-dma at

5.7973.

-The IMF mission to Argentina is likely to take some focus at the NY crossover,

after Tuesday saw the Argentine central bank break the IMF-imposed limit on

daily currency interventions. Officials are headed to Buenos Aires today and

it's unlikely to be a friendly meeting after the opposition leader (and victor

of the recent primary election) threatened to scrap the IMF accord.

-The Israeli central bank rate decision and Mexico's CB inflation report take

focus Wednesday, although broader risk sentiment is likely to be a bigger driver

in EM currencies at this stage.