Trend is your friend as eyes.......>

EMERGING MARKETS: Trend is your friend as eyes turn to the Fed

-Recent trends extended further Tuesday, with TRY adding to the week's gains

while the ZAR slid. USD/TRY looks to close below the 200-dma, helping provide a

further boost to TRY/ZAR, which already trades higher by 5.5% since last week's

lows. ZAR came under further pressure as beleaguered utility Eskom's earnings

call showed the company see this year's losses repeated in 2020.

-Elsewhere, sentiment among EM took a slight knock as President Trump upped the

ante in his war of words with China. His more combative stance helped pressure

the CNH, feeding through to LatAm FX, which suffered from the off.

-SocGen warned overnight that EMFX will not rally further from a mere 25bps cut

from the Fed, which would prove neutral or even negative for EM space. Any 50bps

Fed cut may be knee jerk positive, but this should fade going forward.

-Outside of the critical Fed decision Wednesday, the Turkish central bank's

inflation report is due, as well as China's July PMI data and the Brazilian

central bank rate decision, where they're expected to mirror the Fed by cutting

rates by 25bps.