REFILE-BUZZ-COMMENT-Busy week beckons those trading emerging currencies

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Oct 27 (Reuters) – With emerging market currencies weighed by risk aversion ahead of next Wednesday’s Federal Reserve meeting, next week is set to be a busy one for traders who will also have to contend with rate decisions from EM nations and a raft of data.

Although the U.S. central Bank is expected to keep its key interest rate on hold next week, 21 economists of 111 polled by Reuters predicted a hike, and persistent concerns about further monetary tightening continue to undermine riskier assets like EM currencies.

That said, losses have been limited with a new 2023 low for MSCI’s EM foreign exchange index just one point below the former year low, and the index has since bounced.

Against this risk averse backdrop, traders in Asia will see a string of PMI releases, starting in China on Tuesday and followed by PMIs for South Korea, Indonesia, Thailand, Malaysia, and Taiwan on the day of the U.S. rate decision. The following day sees a rate decision in Malaysia and PMIs for Singapore and the Philippines. Service PMI from China rounds the week off on Friday Nov. 3.

Traders of Central and Eastern European currencies will grapple with Czech GDP, Polish CPI, PMIs throughout the region, and a Czech interest rate decision on Nov. 2.

Turkish inflation data is due at the end of the week, while traders of Latin American currencies will focus on a Brazilian rate decision and PMI data as well as Q3 GDP for Mexico.

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(Jeremy Boulton is a Reuters market analyst. The views expressed are his own)

((jeremy.boulton@thomsonreuters.com))