TRY on top for second session as...>

EMERGING MARKETS: TRY on top for second session as Erdogan pressures CB further

-As was the case yesterday, TRY trades firmer following the central bank's

425bps one-week repo rate cut, with a speech from President Erdogan doing little

to prop up USD/TRY. Erdogan talked up the prospect of further easing later this

year, stating that as the interest rate falls, so will inflation, adding that

"cuts will continue gradually towards year-end". USD/TRY extends losses after

failing to break the 100-dma yesterday, with USD/TRY bears now targeting 5.6075

and the 200-dma at 5.5644.

-Better oil prices and another strong session for Russian sovereign bonds have

worked in favour of the RUB so far Friday, with focus turning to the CBR rate

decision at 1130BST/0630ET, where the CBR are seen reversing their late-2018

policy action by trimming rates by 25bps.

-USD/KRW broke clear of the 1178.43 50-dma to hit a new six-week high Friday.

KRW implied vol markets were lively overnight as risk reversals surged alongside

spot to partially correct recent downside. Outside of the Russian decision

today, Colombian rates are also due, seen unchanged at 4.25%.