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Stronger-than-expected CNY fix.....>

EMERGING MARKETS
EMERGING MARKETS: Stronger-than-expected CNY fix only goes so far
-A poor start to the session for risk was countered slightly by the
stronger-than-expected CNY fix (7.0211), but the support ebbed away as Europe
came to market. USD/CNH was bid up to the day's highs of 7.1113 shortly after
the Asia close, keeping bull's focus on the cycle highs at 7.14.
-The selling pressure on the Chinese currency fed through to broader risk
sentiment, triggering pressure on TRY, ZAR, KRW and TWD among others. The
sell-off has been somewhat contained so far, although cracks are beginning to
show in USD/TRY, which has rallied back above the 200-dma after an extended drop
over the past two weeks. Similarly in USD/ZAR, new cycle highs have been printed
this morning at 15.4367.
-Brazilian economic activity data and Russian GDP numbers are the calendar
highlights, although the fragile risk sentiment is likely to dominate Monday's
US trading hours.

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