The Turkish crisis is mostly about a change in global financial conditions. The Fed’s tightening and the raising of new tariffs weigh. Other emerging economies may follow and as we have seen, developed economies are not immune. The match that sparked the Turkish crisis was the US sanctions on Turkish ministers, an outcome of the … “More emerging and non-emerging economies could suffer from a strong dollar”
Month: August 2018
British Pound Rallies Then Drops on Mixed UK Jobs Data
The British pound today rallied briefly following the release of the UK labour market report for August, where the unemployment rate hit a new record low. The GBP/USD currency pair was weighed down by the higher than expected claimant count rate, which saw it drop from session highs back to its opening levels. The GBP/USD currency … “British Pound Rallies Then Drops on Mixed UK Jobs Data”
Aussie Mixed As Market Sentiment Improves, Economic Data Disappoints
The market sentiment improved today after fears about the crisis in Turkey eased, alleviating pressure on riskier currencies. Yet the Australian dollar was mixed as domestic macroeconomic data was also mixed, while economic releases in China, Australia’s biggest trading partner, were universally disappointing. The business confidence index reported by National Australia Bank ticked up from 6 to 7 in July. At the same time, the business conditions index fell … “Aussie Mixed As Market Sentiment Improves, Economic Data Disappoints”
EUR/USD: Downside Risk Unlikely To Evaporate N-Term Even If Turkey CB Takes Bold Moves – Danske
EUR/USD was hit by the Turkish crisis and managed to find some stability. What’s next? Can it recover on upbeat German GDP or will Turkey bring it down? Here is their view, courtesy of eFXdata: Danske Research discusses EUR/USD outlook in light of the possible impact of the ongoing Turkish Lira crisis. “Even in the … “EUR/USD: Downside Risk Unlikely To Evaporate N-Term Even If Turkey CB Takes Bold Moves – Danske”
Pound Languishes on Monday, Waiting for Key Economic Releases
The Great Britain pound behaved similarly to the euro today, opening sharply lower but recovering a bit later. And similarly to the euro, the currency was waiting for macroeconomic releases over the rest of the week as the Monday’s economic calendar was empty. Besides the Turkish crisis, which was affecting the whole Forex market, the sterling has its own negative factor in the form of Brexit concerns. It looked like chances for “no-deal Brexit” continued to increase … “Pound Languishes on Monday, Waiting for Key Economic Releases”
Chinese Yuan weakens on Lira Crisis, Rallying Stocks
The Chinese yuan is weakening on Monday, hurt by the Turkish lira crisis and a rallying stock market. Investors have also combed through recent remarks by the Peopleâs Bank of China (PBOC) about refusing to use the currency as a tool in its trade dispute with the US. Despite the domestic traders overreacting to start … “Chinese Yuan weakens on Lira Crisis, Rallying Stocks”
Euro Bounces from Lows, Waits for Economic Data
The euro bounced today after opening sharply lower due to the financial crisis in Turkey. The current trading session was light on other events, including economic releases, but tomorrow’s session will be different, with plenty of macroeconomic data from the eurozone. Turkey’s crisis rattled all the markets, but European ones especially. European banks have strong exposure to Turkish assets, making them especially vulnerable. Tomorrow, there … “Euro Bounces from Lows, Waits for Economic Data”
Major Details: Don’t Leave Out the Minor Pairs
When traders first start out on their journey, they either tend to stick to a few major pairs, or they trade every instrument they possibly can. The Majors are particularly popular because they have the lowest spread and are easily predictable with the simplest technical analysis techniques. The majors are the 7 most traded … “Major Details: Don’t Leave Out the Minor Pairs”
South African Rand Touches Lowest Level in Two Years
The South African rand touched the lowest level in two years against the US dollar today amid fears that the Turkish financial crisis will spread to financial systems of other countries. Riskier currencies of emerging markets, the rand being among them, were soft today due to risk aversion on the Forex market. Turkey’s central bank attempted to assuage investors’ fears. While it managed to pause the free fall of the Turkish lira, … “South African Rand Touches Lowest Level in Two Years”
Turkish Lira Pulls Back from Record Low After Central Bank Announcements
The Turkish lira recovered a bit today after touching a new record low overnight. The nation’s central bank attempted to support the currency, making couple announcements. The Central Bank of the Republic of Turkey announced measures for liquidity management of the lira and FX deposits, promising that “the Central Bank will provide all the liquidity the banks need.” Separately, the central bank announced that it is cutting the foreign currency reserve requirements for Turkish banks. … “Turkish Lira Pulls Back from Record Low After Central Bank Announcements”