EM FX Daily Report

The report provides a daily review of Emerging Market FX, highlighting significant volatility in Turkey due to political upheaval and the market's focus on a potential US-Iran deal.

Key Takeaways

• 1.Middle East geopolitical headlines regarding a potential US-Iran agreement via Pakistan mediation are currently the primary drivers of risk sentiment across EM FX.
• 2.Turkey is experiencing significant TRY outflows and position reduction following a court ruling to reinstate former Chairman Kilicdaroglu, leading to massive state bank interventions.
• 3.The desk maintains a long bias preference for ZAR if a Middle East resolution is reached, as it would favor South African terms of trade.

Table of Contents

• Sales & Trading
• Country Specific Disclosures

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