Turkey’s central bank will provide all the liquidity needed by banks and closely monitor markets and prices to take all necessary measures to maintain financial stability, the bank said on Monday.
Turkey’s lira slumped for a fourth day to a new record low, with the selloff spreading to other emerging-market currencies, after the country’s president showed no signs of backing down in a standoff with the U.S. The lira tumbled as much as 11% against the US dollar in thin trading in Asia, before trimming losses after the nation’s Banking Regulation and Supervision Agency stepped in to limit swap transactions on the battered currency. Turkey will announce measures to calm markets today, according to Treasury and Finance Minister Berat Albayrak, and start implementing an economic action plan.
The trading week 13-17 August 2018 in the forex market starts today with a very interesting and rather unusual economic calendar as there are no any significant economic events in all trading sessions. The focus is on the latest economic and financial crisis in Turkey, with a large selloff in Turkey’s lira currency which made investors worried about potential contagion.
In currencies, the euro was soft near 13-month lows on Monday as a slide in the Turkish lira sparked a sharp sell-off in the South African rand and boosted demand for safe havens such as the US dollar and the yen. The GBP/USD is trading into 1.2750 ahead of Monday’s London market session after thin action in the Asian markets saw major pairs close their week-opening gaps before returning to middling on the day’s action.
In commodities, Gold prices extended declines into a third session on Monday, as the US dollar climbed to a 13-month high against major peers amid financial crisis in Turkey. Regarding Oil, prices dipped on Monday as rising trade tensions dented the outlook for fuel demand growth especially in Asia, although US sanctions against Iran still pointed towards tighter supply.
For today no high impact news occur in the economic calendar.