TRY toppled as CBRT up the ante....>

EMERGING MARKETS: TRY toppled as CBRT up the ante

-USD/CNH remained in the middle of the week's range, sitting either side of 7.07

throughout. Reports that China could buy $20bln in US agri products in the first

year of a deal went under the radar despite the low purchase figure (the report

goes on to say this could rise to $50bln in year two). The China/US leaders now

look more likely to sign off on 'phase 1' of the talks at the APEC summit on

November 16/17.

-Bucking recent outperformance, the TRY underperformed broader EMFX as the CBRT

made a larger cut to interest rates than expected - trimming the main policy

rate by 250bps vs. Exp. 100bps. USD/TRY rallied, but found resistance well ahead

of the Wednesday high at 5.8119.

-The Russian rate decision takes focus Friday, with the CBR seen trimming rates

by 25bps to 6.75%. Mexican retail sales are also on the docket as well as

elections in Argentina, Colombia and Uruguay this weekend.