Turkish Lira hits record low against the USD following election results

Monday, June 08, 2015

The Turkish Lira declined sharply over the weekend and extended losses by over 5% this morning to reach a record low against the USD after Turkey’s Islamist-rooted AKP party lost its Parliamentary majority after 13 years in power. Turkish elections yesterday set an end to President Recep Tayyip Erdogan’s campaign. AKP support declined to 41% this time from 50% in the previous general election in 2011.     

TRYUSD

TRYUSD Curncy (TRY-USD X-RATE)   2015-06-08 08-45-05

China’s imports declined sharply by 17.6% y/y in May versus analysts’ estimates of a 10% drop. Exports fell 2.5% y/y in May against analysts’ expectations of a 4.4% decline. However, the Hang Seng index climbed higher overnight and gained nearly 0.5% towards 27,400.

The Nikkei index struggled for clear direction and consolidated around 20,450 despite positive Japanese economic data. Japan’s economy grew 1.0% in Q1 2015 compared to a 0.6% rise in the last quarter of 2014, beating analysts’ expectations of 0.7%. South Korea’s Finance Minister, Choi Kyung-hwan, has criticised leading global economies for not doing enough in order to tackle a slump in global growth. He called on G20 nations to cooperate in order to boost economic dynamism.  

Qatar and Russia could lose out on hosting World Cups, according to Compliance Chair Domenico Scala, the Independent Chairman of FIFA’s audit and compliance committee. He reported that the FBA’s investigation is seeking evidence of bought votes which could lead to reappraisal.   

European equity markets opened mixed this morning as Greek uncertainty weighs on market sentiment. There were no substantive Greek developments over the weekend. The DAX, Italian and London equity benchmark indices edged slightly higher this morning while the CAC and IBEX indices remained in negative territory. The euro rebounded from recent heavy losses and edged higher this morning breaking 1.1150 against the US dollar.

EURUSD

EUR Curncy (Euro Spot )  2015-06-08 08-43-41

 

Events for today:

0050

JP

Q1

GDP

0250

CN

May

Imports/ Exports

0700

DE

Apr

Trade Balance

0930

EZ

Jun

Sentiment Index

 

All times UK Local Time

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