The big worry is 'contagion' from the Turkish instability
TRY is falling again to open the week (I posted this chart a few minutes ago):
- The Chinese yuan has hit a fresh low for its weakening (CNY lowest at its reference rate since May of 2017)
- MXN, equites regionally here all lower
- ZAR lower
The Turkish government is promising action Monday to try to stem losses and capital outlflow.
I don't reckon it'll be enough.
And no, I haven't even seen them, my expectation is merely based on experience of what I have seen elsewhere in cycles of instability and developing crisis. Its never over at the first government response.
So, this should get worse before it gets better.
