Daily outlook for EM FX: Societe Generale

Quotes from Societe Generale Cross Asset Research:

-In emerging markets, barring the extreme fluctuations of the RUB (+11.7%) and BRL (-6.2%), most currencies have demonstrated less volatility against the USD so far this month. Whether this can continue will essentially depend on Fed Chair Yellen this week.

-The Central Bank of Turkey (CBRT) is forecast to cut its benchmark repo rate by 50bp to 7.25% tomorrow, while the National Bank of Hungary is forecast to keep its key rate unchanged at 2.10%. Turkey's economic advisor Yigit Bulut said that the CBRT has no excuses for not cutting interest rates.

-However, with oil prices having found a more stable footing and US yields having risen by 40bps this month, the CBRT may choose to sit tight in order to prevent another TRY sell off.