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Volatile EMFX props up haven FX -While........>

FOREX
FOREX: Volatile EMFX props up haven FX
-While there were decent moves in G10 FX Monday, the haven FX rally pales in
comparison to the drop in ARS, with the Argentine currency spiralling as much as
35% against the USD, hitting record lows in the process. This fired up
volatility further, helping keep JPY and CHF bid from the off and weighing on
high beta FX.
-USD/JPY's drop bottomed out at Y105.05 before the pair recovered slightly
alongside the 10am NY cut. CHF echoed the move, evident in EUR/CHF holding close
to multi-year lows printed last week at 1.0863 despite evidence that the SNB are
stepping in to prevent the CHF from any disorderly rally.
-Interestingly, GBP outperformed on little cemented news, with decent
flow-driven orders in EUR/GBP said to be propping up the price. GBP/USD briefly
edged back above $1.21, but was unable to maintain the gains.
-UK jobs data, German ZEW for August and US CPI inflation numbers are the
highlights Tuesday. The speaker slate remains empty, with no central bank speak
due until the Fed minutes release on Aug21.

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