Entering into US session, Yen is trading as the strongest one for today, followed by Swiss Franc as markets are back in risk averse mode. Commodity currencies are generally lower. In particular, New Zealand Dollar’s selloff is rather serious after terribly bad business confidence data. Canadian Dollar also turns soft as US-Canada trade negotiation is still in progress even though signs are optimistic. Euro follows commodity currencies as weakest as Turkish Lira crisis might be deepening again.
USD/TRY is up another 4.5% for today, above 6.72. 61.8% retracement of 7.2068 to 5.6919 at 6.6281 is taken out rather decisively. Now, USD/TRY could head to retest 7.2069 high. Break of today’s low at 6.4088 is needed to be the first sign of stabilization. Otherwise, the Lira will continue to face selling pressure.
In the stock markets, major European indices are generally in red. FTSE is down -0.52%, DAX is down -0.45%. CAC is down -0.28%. Renewed selloff in China is rightfully blamed as a reason, as there is no war near an end of US-China trade war. Nonetheless, worries over Turkey should have played an important part too. Earlier today Nikkei closed up 0.09%, Hong Kong HSI down -0.89%, China Shanghai SSE down -1.14% and Singapore Strait Times down -0.56%.
