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TRY on the front foot as CBRT......>

EMERGING MARKETS
EMERGING MARKETS: TRY on the front foot as CBRT admit policy space limited
-A somewhat upbeat speech from the Turkish central bank Governor Uysal helped
buoy the TRY in early trade, resulting in TRY outperformed the broader EMFX
space despite more subdued sentiment. While the governor stated that the CB's
cautious approach to policy will continue, he admitted that the policy easing
seen across July and September has used up much of the bank's policy space going
forward. This helped pressure USD/TRY back toward key support layered at the
week's lows and 50-dma at 5.6741/5.6753.
-Broader risk-off moves in global equity markets (led lower by energy and tech
sectors) has rubbed off on higher beta EMFX, with ZAR trading poorly as well as
the RUB and trade/tech-exposed KRW.
-Elsewhere in Asia, IDR fell sharply, shortly followed by confirmation from the
Indonesian central bank that they had intervened via domestic NDF and spot
markets to 'smoothen' volatility.
-The Czech CB decision is due at 1200BST/0700ET - expected unchanged at 2.0%.
Mexican unemployment rate data is also on the docket.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com