SARB's dovish hold undermines......>

EMERGING MARKETS: SARB's dovish hold undermines the ZAR

-The South African Reserve Bank decision initially provided some support for the

ZAR as the unchanged rate decision shook out positions looking for another cut.

USD/ZAR initially slipped to lows of 14.6074 before rallying sharply as markets

eyed downgrades to South African growth and inflation expectations.

-Elsewhere, the BRL also traded on the backfoot following the BCB decision late

yesterday. With the central bank so downbeat on inflation throughout 2020,

markets have rushed to price in further easing - marking down the BRL in the

process. USD/BRL's gap higher at the open sees bulls target 4.1547 initially

(Fib resistance) before recent cycle highs at 4.1941 can be considered. The BCB

decision clearly helped prompt hedging activity among many, with USD/BRL options

volumes soaring well ahead of average Thursday.

-Elsewhere, ranges were more muted. Offshore INR trade paid little attention to

comments from RBI's Das, despite the RBI governor hinting at further rate cuts.

-Turkish consumer confidence and Polish retail sales are the sole releases of

note on a quiet Friday calendar for EMFX.