TRY extends outperformance as......>

EMERGING MARKETS: TRY extends outperformance as carry theme firms

-The TRY is one of the few global currencies to continue to outperform the USD

in recent weeks and now looks to clock a strong start to the week as the carry

trade theme should cement further following the Wednesday Fed decision. USD/TRY

is now on track to test the 200-dma support at 5.5642, a level not consistently

traded below since February. ZAR is also benefiting as the carry effect ripples

through EM currencies, but us far from erasing sharp losses seen at the tail-end

of last week. ZAR bulls eye the 200-dma at 14.1917 for direction. 

-Asia-Pac FX was more muted, with KRW clawing back some recent losses while the

CNY underperformed, helping boost USD/CNY back above the 50-dma for the first

time in three weeks. The moves come ahead of the bilateral US-China trade

negotiation meetings due to kick off on Tuesday, with markets apparently

positioning for a further lack of progress between the two countries.

-The Turkish central bank's inflation report due Wednesday will be a highlight,

with Brazil seen cutting rates by 25bps on the same day.