How to trade the JPY?
Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:
Turkish lira is falling down
It’s a tough time for the Turkish lira. The USD/TRY is moving up strongly and aggressively. It broke through the highest historic closing price of 2018 year, notably 6.82, and has almost reached the 7.00 mark.
According to economists from TD Securities, the Central Bank of Turkey (CBRT) will completely exhaust Net International Reserves this week. Moreover, if the present rate doesn’t slow down, total reserves will be over at the latest by the 3rd week of September, at the earliest by the 3rd week of July.
The CBRT cut the benchmark interest rate by 100 basis points to 8.75 percent, surprising economists, who had forecast a 50-basis point reduction. However, such a huge decline would have happened anyway, even if the CBRT didn’t cut rates. Some analysts think the pair can rise even to the 8 mark.
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Increased Volatility is Coming
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Market Crash Incoming?
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
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