EUR/USD 1.13845
0.132%
Gold 4031.36
0.118%
Oil 69.995
-1.863%
USD/JPY 161.647
-0.092%
GBP/USD 1.32058
0.118%
GBP/JPY 213.471
0.037%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
The EU oil coordination group says the situation is currently stable, mainly due to the reduction in global inventories over the past few months.The EUs oil coordination group will continue to monitor the security of the EUs oil supply and coordinate actions as necessary.June 26 – The European Central Bank (ECB) will discontinue approximately 40 regulatory guidelines for banks as part of measures to reduce the regulatory burden on the banking sector. ECB Executive Board member Heinz Ehrlich stated on Friday that the ECB had reviewed over 130 such documents “to make them more concise and easier to use.” He indicated that the cancelled documents were either outdated and replaced by new regulations, or no longer applicable, while others had been revised. Following the financial crisis, European authorities have sought to reduce the massive requirements imposed on banks to improve regulatory efficiency while maintaining the hard-won resilience of the financial system. However, European banks believe these reforms are still insufficient, as the United States is pushing for even greater regulatory deregulation by eliminating and reducing some requirements.June 26th - The National Medical Products Administration (NMPA) announced that the newly revised "Regulations on Registration and Filing of New Cosmetic Raw Materials and Data Management" has just been released and will officially take effect on July 15th. The new regulations will remove obstacles and difficulties in cosmetic raw material innovation, enhancing the efficiency and empowering the research and development of my countrys cosmetic industry. Li Yunfeng, Deputy Director of the Cosmetic Supervision Department of the NMPA, stated that the new regulations encourage companies to adopt new technologies and methods such as animal substitution testing, reducing international trade technical barriers and providing policy support for promoting the export of Chinese cosmetic products.On June 26, it was reported that certified public accountants (CPAs) play a vital role in maintaining market economic order and protecting the legitimate rights and interests of the public. The 23rd session of the Standing Committee of the 14th National Peoples Congress passed a decision on amending the Certified Public Accountants Law on June 26, which will take effect on January 1, 2027. This amendment to the CPA Law, while maintaining the basic framework and main systems of the current law, focuses on strengthening Party leadership, improving regulatory measures, and increasing accountability. It aims to address prominent issues in the CPA industry, such as audit fraud, promote the CPA industrys fulfillment of its "gatekeeper" responsibilities, and drive the industrys healthier development.

USD/TRY reestablishes its annual high on route to 17.00, notwithstanding Erdogan's expectation of future inflation moderation

Alina Haynes

Jun 06, 2022 15:25

 截屏2022-06-06 下午3.23.52.png

 

In spite of Turkish currency (TRY) traders' inflation worries and President Erdogan's efforts to appease TRY purchasers, the USD/TRY continues to trade near $16.36, the highest level since 2022. The pair's upward momentum is influenced by Friday's high Turkish inflation data for May, as well as the US dollar's comeback over the last week, not to mention expectations of the Fed's faster/more aggressive rate rises.

 

According to Reuters, "Turkish President Tayyip Erdogan stated on Sunday that inflation numbers from the month of May, when annual consumer prices soared to a 24-year high, indicate that inflation is now on the down." It is noteworthy that the May inflation rate for Turkey increased to 73.5 percent in the most recent report.

 

Reuters also reported that the lira fell by 44 percent last year and has been the poorest performer in emerging markets for several consecutive years, mostly owing to economic and monetary policy worries under the administration of President Tayyip Erdogan.

 

In contrast, the odds supporting a 0.50 percent rate hike by the Federal Reserve in September have lately increased to 75 percent from 35 percent a week earlier, which emphasizes this week's US Consumer Price Index (CPI) data and favors US dollar purchasers. In spite of this, the US Dollar Index (DXY) reversed a two-week downward trend at Friday's close, trading down 0.14 percent intraday near 102.000 as of press time.

 

US Nonfarm Payrolls (NFP) for May came in at 390K, above expectations of 325K but falling short of the upwardly revised prior readings of 428K. In addition, the unemployment rate stayed constant at 3.6% against predictions of a minor reduction to 3.5%. In addition, the US ISM Services PMI dropped to 55.9 in May, compared to the market estimate of 56.4 and the flash reading of 57.1 in April. Following the release of the statistics, Loretta Mester, president of the Federal Reserve Bank of Cleveland, stated that the Fed's only worry is inflation. The officials underlined that the likelihood of a recession has increased.

 

Wall Street benchmarks finished in the negative and US 10-year Treasury rates saw their first weekly increase in three weeks to reflect the risk-averse sentiment of the previous day. However, S&P 500 Futures increased by 0.5 percent to 4,126 and US 10-year Treasury rates fell by 1.3 basis points (bps) to 2.942 percent as per the most recent data available.

 

Amid a pre-Fed blackout for Fed officials and in anticipation of Friday's US CPI, USD/TRY traders should pay attention to risk drivers moving forward.

Technical Evaluation

A successful breach of the prior resistance line from early January, about 16.45 at the time of publication, would lead USD/TRY values toward the $17.00 mark before testing the late 2021 top at $18.36.


Suggestion