TRY/ZAR flies as outlooks..........>

EMERGING MARKETS: TRY/ZAR flies as outlooks contrast further

-TRY extended its recent winning streak, flying further ahead of the EMFX pack

as wires reported Turkey and the US had reached an agreement on establishing a

'buffer zone' in Syria - a move which could substantially soothe tensions

between the two countries. This underpinned and extended the winning streak in

TRY which hit fresh multi-month highs against the USD, rewarding those who had

bought TRY on the break through the 200-dma earlier this week.

-TRY contrasted with ZAR, which dropped again as a roadshow for utility Eskom

outlined the company's plan to offload its debt onto the South African sovereign

- a move that's unlikely to please any ratings agencies. This prompted USD/ZAR

bulls to press the rate comfortably through 15.00, a move which only then

managed to find resistance at the June highs of 15.1726. Offshore INR also sank

as Pakistan moved to cut diplomatic ties with the country, severing bilateral

trade.

-Chinese trade balance data, Hungarian, Mexican and Brazilian CPI are due. The

central bank of Philippines is seen cutting rates by 25bps to 4.25%.