European traders to monitor Turkish lira development in near term

Posted 10 August, 2018

The euro keeps losing grounds against the US dollar on Friday. Today, the rate fell down to some 1.1440 breaking the 1.15 handle, which was a strong support beginning from the start of summer. As a result, this was a downward signal and sellers prevent all recovery attempts immediately.

The main pressure is naturally coming from the strong greenback, which is ahead of its rivals making use from the trade war being a protective asset. At the same time, the US dollar is supported by persisting difference with the monetary policy of the EU, with the European Central Bank making no haste to raise the interest rate.

Moreover, the euro was also affected by the concerns expressed by the European Central Bank citing risks that regional banks can face from Turkey. In particular, the Turkish lira has slumped to the record bottom. Notably, UniCredit and BNP Paribas are also in danger as they make large operations in Turkey.

In this situation, traders will monitor the development of this factor in the near term, and the first signs of the lira recovery may push euro up, especially if the USD bulls lose steam.

Previous forecast

13 August, 2018 10:31

← CME large funds reduce positions

The Commodity Futures Trading Commission (CFTC) released the Commitments of Traders (COT) for the week ending last Tuesday. Non-commercial traders reduced net short position on bitcoin contracts by 90 to 370. Large speculators have been cutting net positions for the second week in a row after 2-week upturn.

CME large funds reduce positions

Next forecast

09 August, 2018 16:54

US dollar slightly improves expecting Friday economic reports →

The US dollar again enjoys demand after the yesterday's trading session. The currency mostly gets support from the escalation of the US-China trade conflict, which took the centre stage this week. After the threats crossover, the players are not highly interested in risk assets and choose US dollar for now. However, the greenback lacks a strong driver for the more stable upturn.

US dollar slightly improves expecting Friday economic reports
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