Morning Brief: 22/03/2021
The Turkish lira stole the show during today’s Asian session after the currency plunged on the market opening, following the news that Turkey’s President Recep Tayyip Erdogan sacked the nation’s central bank Governor Naci Agbal over the weekend.
According to reports, President Erdogan was unhappy with the recent 200 basis point rate increase by the now former central bank Governor. Traders sold the Turkish aggressively lower against the greenback on the weekly open, with the pair trading down by as much as 17 percent at one point.
See real-time quotes provided by our partner.
As the European trading session is getting underway the pair is starting to recover higher and is moving away from the worst levels of the morning. In terms loss the Turkish lira is now around 10 percent lower against the buck.
SocGen, the French investment bank, have stated that Turkey is weeks away from a currency crisis. They bank argue that Erdogan’s action now leaves the country “beyond the point of no return”.
A leading analyst from SocGen noted “Without much remaining reserves to defend the currency and considering an expected exodus in foreign and local investor capital, it may be difficult for Turkey to avoid another currency crisis in the coming months.”
The People’s Bank of China kept interest rate unchanged this morning as widely expected. PBOC Governor Yi Gang, also noted over the weekend that “The PBOC still has room to provide liquidity to the economy, leverage levels are not too high”.
See real-time quotes provided by our partner.
In terms of other market moves today, the Nikkei 225 has taken a hit over risk-off market sentiment and has lost around 2 percent intraday. The Japanese yen currency has also strengthened as traders move in safe-haven currencies.
The US dollar currency has firmed across the board due to the sentiment shift. The buck has continued last Thursday and Friday’s move higher and is making solid traction against the euro and antipodean currencies.
See real-time quotes provided by our partner.
Sterling is also subdued due to the weekends news that the EU may block AstraZeneca COVID-19 vaccine exports coming to the United Kingdom. This has raised fears that this move could slow the ongoing vaccine rollout in the UK.
Bitcoin has opened the week on stronger footing after falling towards the $56,000 level over the weekend. Bitcoin traders face a tense week as the top crypto struggles with the $60,000 resistance level and the largest ever option expiration event, which is due on March 26th.
Data Watch
The economic calendar during the European session is fairly subdued, with the German monthly Buba report and seasonally adjust current account data from the eurozone economy being released.
See real-time quotes provided by our partner.
All eyes will be on a scheduled speech from FED Chair Jerome Powell during today’s US trading session, as the United States central bank head delivers his latest thoughts on the US and global economy.
A number of Federal Reserve speakers will be out on the wires today after Chair Powell’s speech. FED members Daly and Quarles are set to talk after FED Chair Powell during the US session, while FED member Bowman is also set to speak after Wall Street closes.
A comprehensive website for traders, both experienced and new! Checkout our content and learn how to invest and speculate in the markets using margin traded products. Our team of educators has extensive experience and is here to help. Enjoy!
© 2020 YouTrading UK - Leaders in Trader Training.
Cookie | Duration | Description |
---|---|---|
__cfduid | 1 month | The cookie is used by cdn services like CloudFare to identify individual clients behind a shared IP address and apply security settings on a per-client basis. It does not correspond to any user ID in the web application and does not store any personally identifiable information. |
_wpfuuid | 11 years | This cookie is used by the WPForms WordPress plugin. The cookie is used to allows the paid version of the plugin to connect entries by the same user and is used for some additional features like the Form Abandonment addon. |
cf_use_ob | This cookie is set by the provider Cloudflare content delivery network. This cookie is used for determining whether it should continue serving "Always Online" until the cookie expires. | |
cookielawinfo-checbox-analytics | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics". |
cookielawinfo-checbox-functional | 11 months | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". |
cookielawinfo-checbox-others | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other. |
cookielawinfo-checkbox-advertisement | 1 year | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Advertisement". |
cookielawinfo-checkbox-necessary | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary". |
cookielawinfo-checkbox-performance | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance". |
viewed_cookie_policy | 11 months | The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data. |
Cookie | Duration | Description |
---|---|---|
YSC | session | This cookies is set by Youtube and is used to track the views of embedded videos. |
Cookie | Duration | Description |
---|---|---|
_ga | 2 years | This cookie is installed by Google Analytics. The cookie is used to calculate visitor, session, campaign data and keep track of site usage for the site's analytics report. The cookies store information anonymously and assign a randomly generated number to identify unique visitors. |
_gid | 1 day | This cookie is installed by Google Analytics. The cookie is used to store information of how visitors use a website and helps in creating an analytics report of how the website is doing. The data collected including the number visitors, the source where they have come from, and the pages visted in an anonymous form. |
Cookie | Duration | Description |
---|---|---|
_fbp | 3 months | This cookie is set by Facebook to deliver advertisement when they are on Facebook or a digital platform powered by Facebook advertising after visiting this website. |
fr | 3 months | The cookie is set by Facebook to show relevant advertisments to the users and measure and improve the advertisements. The cookie also tracks the behavior of the user across the web on sites that have Facebook pixel or Facebook social plugin. |
IDE | 1 year 24 days | Used by Google DoubleClick and stores information about how the user uses the website and any other advertisement before visiting the website. This is used to present users with ads that are relevant to them according to the user profile. |
test_cookie | 15 minutes | This cookie is set by doubleclick.net. The purpose of the cookie is to determine if the user's browser supports cookies. |
VISITOR_INFO1_LIVE | 5 months 27 days | This cookie is set by Youtube. Used to track the information of the embedded YouTube videos on a website. |
Cookie | Duration | Description |
---|---|---|
_gat_UA-42160853-2 | 1 minute | No description |
cf_ob_info | No description | |
CONSENT | 16 years 8 months 3 days 6 hours 2 minutes | No description |