Today traders await the European Central Bank to make a policy statement at 14:45 MT (GMT+3).
TRY: no happiness on gas discovery
This Friday, the Turkish President Recep Tayyip Erdogan announced the biggest natural gas discovery Turkey ever had. The gas field was found in the Black Sea.
Fundamentally, that’s very good news for Turkey. With this discovery – and with the successful development of the gas field - it would no longer need to rely on Russia, Iran, or Iraq in providing its’ economy with such a key energy source like gas. But…
The field resulted to be less than expected. So the impact of this news is not as strategic as it was expected. Rather, tactical. However, it does give Turkey another leverage at hand, especially in view of its’ rally to become a primary regional power and beyond.
The TRY initially took over the USD, probably hoping for greater news – greater both tactically and geographically. USD/TRY dropped below 7.20. Afterwards, however, it reversed all the gains getting back above 7.30.
Currently, USD/TRY is at strategic highs, and no gas field exploration seems to reverse the trend in the long run. 7.40 is a very viable target for the mid-term horizon.
Oil dropped to the lows unseen since late May. Bitcoin has dropped below $30,000, while gold has reversed up from a dip under $1,800.
Moderna rocketed after an announcement that it is going to join the S&P 500 index. The New Zealand dollar surged after the nation’s inflation surpassed the central bank’s target level.
The overall market sentiment is risk-on. The S&P 500 index (US 500) is getting close to the all-time high. Oil is recovering quickly from its recent losses.
What will happen? The FOMC statement will be published at 21:00 MT (GMT+3) on Wednesday, July 28…
PMI reports from the EU, the UK, and the USA will be released during the day!