Sales and Trading EM FX Daily Report

This report provides daily EM FX trading commentary, highlighting increased political risk in South Africa and a maintained bullish stance on the Turkish Lira despite high inflation.

Key Takeaways

• 1.South African Rand (ZAR) longs are no longer preferred as political risk intensifies regarding President Ramaphosa's impeachment inquiry.
• 2.Despite a higher depreciation pace and reduced carry appeal due to rising inflation expectations, the desk remains long on the Turkish Lira (TRY).
• 3.Hungarian Forint (HUF) shows medium-term bullish potential following opposition election victory, though current price action is influenced by Middle East headlines.

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