Emerging Market Currencies Pare Early Gains

Emerging market currencies pare early gains as the EUR/USD rally fades weighing on sentiment. ZAR and TRY both lose ground against the USD, while the PLN, HUF and CZK all pare early gains against the EUR. Looking ahead the data calendar is light in emerging markets, with only Brazil's decision on interest rates later Wednesday likely to garner significant attention with the central bank widely expected to cut 50bps to 10.5%. Elsewhere, market participants will keep a close eye on Hungary's PM who is scheduled to speak at the European parliament Wednesday. EUR/PLN currently trades at 4.3474, after falling below 4.33 earlier. EUR/HUF currently trades at 306.31 after falling below 305 for the first time this year earlier in the session. EUR/CZK trades at 25.558, while USD/TRY trades at 1.8411 and USD/ZAR trades up at 8.0291.