Forex and Bitcoin news for Asia trading Monday 13 August 2018
Early trade in Asia today saw USD/TRY above 7. It has been weakening for weeks, accelerated its losses on Friday and moved sharply lower again here this morning.
Weekend comments from Erdogan were reported, he isn't backing down but has promised official efforts on Monday morning (Turkish time) to stem the currency slide and capital flight. The finance minister was also out with comments along the same lines. Bullets (read from the bottom up for chronological order):
- TRY: Communications Director for the Turkish Presidency - more tweets
- DM currency gap fill nearly filled, TRY ... not so much
- Analysts Sunday notes in response to Turkey and sliding TRY
- Turkey bank regulator limits swap transactions
- Communications Director for the Turkish Presidency warns on TRY FX rate
- More on Turkey's fin min saying action to be taken Monday to ease market concerns
- Turkish fin min says will take steps Monday morning to ease market concerns
- (Very) early Asia FX rate indications - eyes on a plunging TRY
- Turkish lira smashed again as trading for the new week begins
- Why the Turkish lira is imploding
Other:
- China new yuan loans for July 1450bn CNY (expected 1275bn)
- OECD says South Korean economy will slow down in the near future
- PBOC sets USD/ CNY reference rate for today at 6.8629 (vs. Friday at 6.8395)
- WSJ: Turkish Lira’s Fall Raises Concerns for Emerging-Market Investors
- SGD - MAS says current monetary policy stance is appropriate
- An 'ominous' sign for AUD. To fall under 0.69?
- Westpac update their NZD outlook
- New Zealand Food Prices for July: +0.7% m/m (prior +0.5% m/m)
- New Zealand Performance of Services Index (PMI) for July: 55.1 (prior 52.8)
- Trade ideas thread - Monday 13 August 2018
- (Very) early Asia FX rate indications - eyes on a plunging TRY
- World's biggest publicly traded hedge fund says the dollar rally will continue
- Four lessons the Federal Reserve hasn't learned
- Trump threatens Canada with auto tariffs if no NAFTA deal
- Top five trader’s mistakes
USD/TRY has gyrated since the early surge, dropping back to around 6.6 before moving to circa 7 again. Huge swings for it indeed.
'Contagion' fears have ignited moves in other EM currencies and regional stock markets. Lower, of course.
For DM currencies the moves were much smaller and mixed. Yen has been a notable beneficiary, from 110.90 or so late Friday its down now around 110.20, close to the low for the session. Yen is a 'go to' in times of fear and living up to that reputation today.
EUR/USD is down, as is AUD/USD. Against the yen these two have fared much worse, of course. EUR especially is being weighed on by fears of European bank exposures to Turkey.
The CHF has been a beneficiary, but to a smaller extent, USD/CHF down 20-odd points from late Friday. Cable is down a few tics only while the kiwi has managed a small gain; of course it had had a kicking late last week which cleared a lot of selling.
CAD, lower too (some news on tariffs over the weekend in the bullets above).
Gold has dropped, just a few dollars but a bit of an eyebrow raiser given the TRY and associated 'contagion' developments/sentiment developments.
Still to come:
