TRY at all time low - Rabobank

Sandeep Kanihama FXStreet Contributor

Analysts at Rabobank note that the Turkish lira plunged to a new all-time low of 6.30 this morning and currently trades at 5.92.

Key Quotes

“Unless the central bank steps in (or: Erdogan caves in) and raises interest rates and unless Turkish officials make a serious effort in reconciling the diplomatic differences with the US and also the EU, this increasingly destabilising sell-off isn’t going to stop anytime soon.”

“The threats of further sanctions over the detention of pastor Brunson linger as recent meetings have produced next to nothing. There was a bit of movement on the economic front, however, as the Finance Ministry laid out its updated roadmap for the Turkish economy. It said that 2019 GDP growth is seen at 3-4% rather than 5.5%, that the current account is aimed to stabilise at 4% and that inflation should return to single-digit figures as soon as possible.”

“Erdogan will speak at 2 PM local time and it has been reported that Finance Minister Albayrak will first give a briefing this morning at 11 AM local time. Hopefully, this will put some flesh on the bones of this roadmap, but keep in mind that the CBRT has consistently missed its 5%-inflation target over the past decade. Just talk without the support of action will eventually mean nothing, a lesson that the market is happily willing to teach Turkey – which in turn actually should have learned this by now.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.