Forex Marketz Daily Forex News – Fully Markets Update
The euro is trading near a one year low this morning during Asian trade hours. Capitol is flowing into the dollar and safe havens like the Swiss franc. The Turkish lira remains under pressure and traders are worrying this could hit European banks with exposure to the Turkish economy as well as other emerging market economies.
Trader are worried money will also flow out of emerging economies that have large current account deficits and also rely on foreign monies.
As of 12:00 am GMT, the benchmark EUR/USD was trading at $1.1405. It hit a 13 month low on Monday at $1.1365. For the month the euro has lost 2.4 percent.
Traders are also rushing into the safe haven Swiss franc. The euro has fallen to a one year low against the franc at 1.1288 franc per euro. On Monday it was at 1.1324.
The Turkish Lira is hurting the euro and other Currencies
The benchmark USD/JPY last traded at 110.74 yen. The yen is another safe haven but thanks to higher bond yields in the States was a bit softer against the dollar.
The Turkish lira lost 0.6 percent today to trade at 6.955 per dollar. The lira was near the record low of 7.24 set back on Monday. The Turkish central bank has made a pledge to provide liquidity.
The lira has fallen 30 percent this month. This is thanks to trader worries about President Tayyip Erdogan’s reluctance to raise interest rates. There is increasing inflation and a worsening diplomatic row with the United States.
