ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
The tides are once again turning against the Turkish lira. For a week, USD/TRY battled with resistance at its 200-day moving average (DMA). Over the last two trading days, the currency pair finally made new closing highs on the 200DMA breakout. USD/TRY faded after testing the highs from the last 200DMA breakout in July. USD/TRY … Read more
The Turkish lira was one of the biggest beneficiaries of the renewed weakness of the U.S. dollar (DXY0) in the wake of Jackson Hole on Friday. USD/TRY closed at a new low for 2017. In fact, USD/TRY has not traded this low since early December, 2016. The daily chart above shows how USD/TRY has trended … Read more
Desperate times bring out the creativity. On Thursday, January 12, the Central Bank of the Republic of Turkey (CBRT) effectively tightened monetary policy by canceling its weekly auction used to fund banks. On top of this move, Turkey’s President, Recep Tayyip Erdogan, likened Turkey’s forex predicament to a fight against economic terrorism. Deutsche Bank (DB) … Read more
“The Central Bank of the Republic of Turkey (CBRT) closely monitors the excessive volatility in the markets and will take necessary measures against unhealthy price formations that are inconsistent with economic fundamentals. Banks’ borrowing limits at the Interbank Money Market established within the CBRT have been lowered to TL 22 billion to be effective as … Read more
(This is an excerpt from an article I originally published on Seeking Alpha on July 31, 2015. Click here to read the entire piece.) A month ago, I pointed out how the Turkish lira had reversed all its post-election losses. I argued that the lira was due to resume its weakness as the Central Bank … Read more