EUR/USD 1.16073
-0.081%
Gold 4428.23
-0.467%
Oil 85.789
0.464%
USD/JPY 159.787
0.035%
GBP/USD 1.35425
-0.046%
GBP/JPY 216.396
-0.006%
Browse More
  • English
  • 简体中文
  • 繁體中文
  • Tiếng Việt
  • ไทย
  • Indonesia
Subscribe
Real-time News
A senior official from Japans Ministry of Finance stated that Japans fiscal policy and the recent coordinated foreign exchange intervention were among the main topics of discussion during the meeting between Japanese Finance Minister Satsuki Katayama and U.S. Treasury Secretary Bessenter.A senior official from Japans Ministry of Finance stated that Japanese Finance Minister Satsuki Katayama and U.S. Treasury Secretary Bessenter discussed issues such as foreign exchange intervention during a bilateral meeting.On September 1st, it was reported that on August 31st, the leaders of the opposition parties, the "Chudo Reform Alliance," the Constitutional Democratic Party, and the Komeito Party, held a meeting in the Diet and formally decided to abandon the idea of a three-party merger at this stage. The "Chudo Reform Alliance," a new party formed by the Constitutional Democratic Party and the Komeito Party to counter the conservative Takashi City government, was announced on January 22nd. However, in the subsequent House of Representatives election, it won only 49 seats, far below expectations. Subsequently, members of the Constitutional Democratic Party and Komeito Party in the House of Councillors, as well as local organizations, who had originally planned to join the alliance, expressed increasing caution regarding further mergers, and the three-party merger ultimately failed. Japanese scholars believe that although the merger did not materialize, this is only one stage in the long-term restructuring process of Japans opposition parties, and they may continue to cooperate and seek restructuring in other forms in the future.A senior official from Japans Ministry of Finance said that the Bank of Japan is expected to formulate monetary policy based on the economic situation, rather than being influenced by the United States.On September 1st, the "Hangzhou Financial Industry Development 15th Five-Year Plan (Draft for Public Comment)" was released for public comment. The draft includes provisions to promote the clustered development of the financial technology industry. It supports financial institutions and large technology companies in establishing financial technology R&D centers and innovation platforms in Hangzhou, attracts investment to build a digital public service platform for the securities and futures industry, and promotes the joint construction of various financial technology laboratories and incubators. The plan also aims to become a pilot city for the application of artificial intelligence in the financial industry, supporting financial institutions and financial technology companies in conducting research and development on key underlying technologies and cutting-edge technologies for "artificial intelligence + finance," resulting in a number of leading intellectual property achievements. Furthermore, the plan implements the "Data Element ×" financial action, leveraging the Hangzhou corpus to create a trustworthy data space for the Hangzhou financial industry, achieving high-quality supply of financial corpus data, and promoting the industrial application of artificial intelligence in the financial field.

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