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

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.