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By xemarketanalysis January 11, 2017 10:57 am
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    XE Market Analysis: Turkish Lira's Losses Accelerate

    OVERVIEW

    • Major FX is relatively steady while some emerging market currencies are significant under-performers as we await Donald Trump's press conference at 11:00ET.
    • UK industrial and manufacturing production both rose more than expected in November, adding to signs that growth momentum continued in the fourth quarter.
    • Despite UK exports hitting an all-time high in November, the UK trade deficit widened more than expected to £12.1 billion as imports increased at a record pace.

    HIGHLIGHT

    The Turkish Lira has posted fresh record lows for a second straight day, falling over 3% against the US Dollar as its central bank remained reluctant to raise interest rates to attempt to stem the currency's losses. The Lira has lost 9% of its value so far this year, making it the worst-performing currency of any significant sized economy.

    US DOLLAR

    The Dollar is edging out gains against its major counterparts with investors looking for an upbeat and pro-growth message from Donald Trump's press conference. With no data until Friday, Trump's speech will likely be the main factor that drives volatility for the Dollar, potentially sending it back to its 14-year highs.

    BRITISH POUND

    The Pound is broadly weaker today despite the better than expected economic data as Brexit worries keep it under pressure. The strength of imports in November shows domestic demand remained solid, but the increase in the trade deficit, despite higher exports, indicates the Pound seems to be having little affect on overseas demand for UK made goods.

    EURO

    The Euro is lower today as the recent rally continues to fade on political risk and a realization that Brexit has implications for the structure of Europe and its economies. Risks remain for a test of parity against the US Dollar.

    CANADIAN DOLLAR

    The Canadian Dollar is down marginally today as Trump's speech potentially carries risks for the Loonie due to his view of the North American Free Trade Agreement.

    AUSTRALIAN DOLLAR

    The Australian Dollar is holding its ground against the strengthening US Dollar as commodity prices rise. These continue to play a large part in the currency's daily fluctuation, particularly with a lack of local data this week.

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