TRY accelerates gains on...........>

EMERGING MARKETS: TRY accelerates gains on technical break

-The recovery in the TRY extended into a second session, with decent support in

USD/TRY at the 5.7990 100-dma giving way, and opening the door to further losses

down to 5.7387 support and the 50-dma at 5.6721.

-Despite risk-off trade being evident across major FX space (JPY, USD stronger)

the pattern is less clear in EM currencies, with ZAR, TRY, CNH among others

eking out gains against the greenback early Tuesday. Reports late yesterday

(that saw CNH hit cycle lows) that US-China negotiations have hit further

trouble appear to have been largely shrugged off.

-In the first day of trading since Friday's disappointing GDP release, the INR

fell sharply, underperforming broader EMFX space and helping boost USD/INR to

the best levels since mid-December last year at 72.3687. The sentiment was

echoed in Indian equity markets, with the NIFTY50 pressured lower by close to

1.5%.

-South African GDP, Brazilian industrial production and the Chilean rate

decision (exp. to cut 50bps to 2.00%) should keep markets busy.