The Euro continued to recover ground against the US Dollar yesterday, rallying by around half a percent on Tuesday back towards the 1.16 mark. With fears over Turkey taking a back seat for now, investors have unwound many of their recent safe-haven flows and poured back into those currencies deemed riskier, the Euro and indeed Sterling being two of those. This unwinding of safe-haven flows were helped on their way by increased optimism that a deal between the US and China cou
Attention continues to be focused on Turkey, as the Lira responds to political developments swinging wildly in both directions. While major G10 currencies ended the week not far from where they began, the volatility in Turkey spooked emerging market investors. The Lira did, however, manage to post a 6% rebound for the week, a sharp contrast to many of its emerging market peers, most of which ended the week significantly down against the US Dollar.
This week will also be lig
The Pound continued to lose ground against a broadly stronger US Dollar on Tuesday, briefly falling below the 1.27 mark this morning, as ongoing concerns over Turkey led to another risk off session. Tuesday’s UK labour report was also very mixed. While there a was an encouraging sharp drop in unemployment to a fresh 43-year low 4.0%, an easing back in earnings growth provides the Bank of England with further reason to be cautious over the timing of its next interest rate hike
Financial markets remained rocked by last week’s sharp sell-off in the Turkish Lira on Monday. The Lira (TRY) was sold-off violently in the past few days. The currency was sent into freefall on Friday, crashing by over 20% to a fresh record low during a frantic session of trading that wreaked havoc in the foreign exchange markets. Investors fled to the safe-haven US Dollar and Japanese Yen, the former rallying to its strongest position in a little over a year against both Ste
A classic emerging market crisis slammed currency markets last week. The Turkish Lira crashed as President Erdogan and his financial advisers appear to be losing control of the situation and make increasingly bizarre and unhelpful statements. The Euro managed a modest rally earlier in the week, but quickly gave it all back as markets started to worry about the impact of the Turkish crisis on certain European banks and the Eurozone economy in general. The Dollar, Swiss Franc a