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TRY squashed as Trump sends........>

EMERGING MARKETS
EMERGING MARKETS: TRY squashed as Trump sends warning shot over Syria operation
-TRY started the session weak and got materially weaker by the close, falling
sharply as markets anticipated the imminent launch of a military operation into
Syria against Kurds, nominally allies of the US. After Trump claimed the US
would not stand in the way of the Turkish operation, Trump stated that if
Turkish forces did anything he considers to be off limits, he would "totally
destroy and obliterate the economy of Turkey". USD/TRY rallied sharply through
the 100-dma in response, with the pair on track to close at the best levels
since early September.
-Elsewhere, ILS pulled further away from the multi-month highs as the Bank of
Israel rate decision provided a few surprises. While the base rate was kept
unchanged at 0.25%, the bank aggressively flattened the rate path and warned
that negative rate policy could be used to control inflation. USD/ILS eyes a
close above the 3.5129 50-dma for direction.
-China's services and composite PMI data, Czech retail sales, Hungarian and
Chilean CPI are the data highlights Tuesday.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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