Vols remain supported despite......>

EMERGING MARKETS: Vols remain supported despite calming spot

-The likes of ZAR, TRY and RUB continue to correct higher after a volatile week

which saw many EM currencies strike fresh cycle lows against the greenback.

Today's trade has been slightly calmer, allowing many to regain some poise.

Nonetheless, the outlook still looks bearish with traders clearly wary of the

acute headline risk that's been present since the beginning of the week.

-ZAR modestly outperforms, helping USD/ZAR creep back into the lower half of

this week's range, but a break below 15.0870 will be needed before any bearish

reversal can take place. Markets may have taken some confidence from the signing

of further fiscal measures yesterday including debt relief support to help boost

the lowest incomes.

-MXN trades well ahead of US hours, extending the post rate-cut rally after the

Banxico trimmed rates for the first time in half a decade yesterday. USD/MXN

bears now eye 19.50 support for direction.

-The data calendar is clear for EMs Friday, leaving focus on the global trade

environment and ever-present headline risk.