Turkish lira is continuing to drop in opening trade for the week.
Turkish President Erdogan has been speaking publicly over the weekend. He is trying to put some sort of stop to the slide in the currency but with fear (eg. of capital controls, a damaging impact on the economy, further depreciation … in a nutshell the fear on TRY is that if you don't sell it now you'll get a worse rate by holding off) the dominating emotion it'll take drastic action, not just words, to have an impact.
Some of the comments:
- current level of exchange rate cannot be explained logically
- falling TRY a plot against Turkey
- calls on Turks to sell USD/TRY, sell EUR/TRY to support lira
Huh … "calls on Turks to sell USD/TRY, sell EUR/TRY to support lira"
Worst.
Newsletter.
Ever.
Elsewhere, the majors … 'risk' losing out on the fear prevalent in markets, yen a beneficiary
- EUR/USD 1.1374
- USD/JPY 110.39
- GBP/USD 1.2753
- USD/CHF 0.9943
- USD/CAD 1.3171
- AUD/USD 0.7257
- NZD/USD 0.6565
And, the usual … Monday morning market liquidity is very thin indeed. Prices can move, and be moved, on no too much at all.