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Day: August 10, 2018

August 10
2018

Turkish Lira Rattles Global Financial Markets As Currency Crashes 20%

The Turkish lira cratered more than 20% on Friday after the US government announced it was doubling its tariffs on the country’s steel and aluminum exports. The collapse in the lira sent shockwaves throughout global financial markets, prompting the European Central Bank (ECB) to warn major European banks about being exposed to the Turkish economy. On Friday, President Donald Trump tweeted that he authorized an increase on US tariffs on Turkey’s steel […]

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August 10
2018

Canadian Dollar Mixed Despite Amazing Employment Report

Canada’s employment data released today was much better than forecasts, but the performance of the Canadian dollar was largely driven by the market sentiment. As a result, the loonie gained against the extremely weak euro, but fell versus safe currencies, such as the US dollar and the Japanese yen. Statistics Canada reported that Canadian employers added 54,100 jobs in July. That was a far bigger figure than 17,500 predicted by forecasters […]

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August 10
2018

US Dollar Rallies on Stable Inflation, Turkish Fears

The US dollar rallied against its major rivals today, though not against safe ones, like the Japanese yen and the Swiss franc. The reasons for the rally were the stable inflation figures and risk aversion on markets. The US Consumer Price Index rose 0.2% in July, in line with expectations and a bit faster than in June (0.1%). The core components of the index were up 0.2% as well, same as in the previous month and also matching expectations. […]

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August 10
2018

Sterling Pound Drops on UK GDP Data and US Inflation Report

The Sterling pound today was on a downtrend from the Asian session, but recovered slightly after the release of positive UK GDP data. The GBP/USD currency pair’s decline was further accelerated by the release of upbeat CPI data from the US docket. The GBP/USD currency pair today dropped from a high of 1.2836 in the Asian session to a low of 1.2738 in the early American session. The currency pair headed lower in the Asian session due to the risk-off market […]

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August 10
2018

Japanese Yen Gains on Risk Aversion, Positive Data

The Japanese yen gained today amid risk aversion caused by international tensions around the world. Domestic macroeconomic data, while usually having a limited impact on the currency, was also supportive. Japan’s gross domestic product rose 0.5% in the second quarter of this year according to the preliminary estimate. That is compared to the average forecast of a 0.3% increase and the 0.2% drop registered in the first quarter. The Producer Price Index rose 3.1% in July, […]

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August 10
2018

Australian Dollar Falls After RBA Policy Statement

The Australian dollar fell today as the rally of the US dollar and the sell-off of the euro hurt riskier currencies. The passive stance of Australia’s central bank was not helping the currency. The Reserve Bank of Australia released its quarterly Statement on Monetary Policy today. Unlike its New Zealand counterpart, the Australian central bank did not see a material chance of an interest rate cut, anticipating higher rates in the future: Higher interest rates are […]

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August 10
2018

US Sanctions on Turkey Drive EUR/USD Down

EUR/USD dropped to the lowest level in a year today on concerns that the negative impact of US sanctions against Turkey can spill over to the European banking system, which has strong exposure to Turkish assets. Positive US inflation data also weighed on the currency pair. US CPI rose 0.2% in July on a seasonally adjusted basis, in line with expectations. Consumer inflation accelerated a bit from June’s 0.1%. (Event A on the chart.) Treasury […]

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