TRY flash crash highlights lack....>

EMERGING MARKETS: TRY flash crash highlights lack of liquidity Monday

-For the second time this year, TRY was the victim of a flash crash in Asia-Pac

hours, seeing USD/TRY rally over 10% in minutes, before reversing the bulk of

the move. The erratic and brief nature of the move at that time of day has

raised the suggestion that Japanese retail investors were responsible, but is

likely more of an indication of generally low liquidity and thin volumes.

Nonetheless, higher short-end implied vols across both DM and EMFX so far today

show a market that remains unsettled.

-China FX also took plenty of focus from the off, as USD/CNH gapped higher to

touch 7.1926, the highest rate since 2008, with onshore markets mirroring the

move. CNH has recovered somewhat ahead of the NY crossover as Trump noted that

China called U.S. trade negotiators last night & they want to come back to the

negotiating table, adding that this is a very positive development for the world

- although this was denied by China's MOFCOM.

-The calendar's quiet for emerging markets for the rest of the day, with traders

still wary of headline risk as Trump continues his stint at the G7 Summit.