Daily outlook for EM FX: Societe Generale

Quotes from Societe Generale Cross Asset Research:

-In emerging markets, Colombia's central bank is today set to keep its key rate unchanged at 4.5% for a sixth month in a row. The COP has depreciated by nearly 2.8% YTD, extending the 18.8% rout of last year against the USD. Key USD/COP trend-line resistance is now eyed at 2,455.

-Meanwhile, the economy of Mexico probably expanded by 2.9% yoy in Q4. The data may decide if USD/MXN records a first weekly close above 15.00 since February 2009.

-In CEE, our EM team initiated a long EUR/CZK call with a target of 28.00 based on the view that the CZK bounce is overdone and the EUR/CZK floor of 27.00 is here to stay.