Naeem Aslam
Zaye Capital Markets
Geopolitical tension
The Turkish lira has taken a beating after Turkish President Tayyip Erdogan stated that ambassadors from ten western countries, including the United States, France, and Germany, are no longer welcome in Turkey after these nations demanded the release of a well-known businessman, Osman Kavala. In 2016, Osman Kavala allegedly assisted in a failed coup attempt against Erdogan's government. Kavala has denied any ties to Fethullah Gulen, an Islamic cleric based in the United States who is believed to be the mastermind behind the attempted takeover. President Tayyip Erdogan has taken offence to the request by Western countries as he deems that they are contesting Turkey’s independence and its judicial system.
Below is the chart for USD/TRY which shows that this could be the best time to short the USD/TRY pair as the RSI has extended its move to extreme overbought level. Despite all the news and noise on the fundamental side, technical are clearly indicating that this is not a great time to go long on the USD/TRY.
The information is purely for education purposes only and cannot be perceived as an advise.
Recommended Content
Editors’ Picks
EUR/USD stays below 1.1100, looks to post weekly losses
EUR/USD continues to trade in a narrow range below 1.1100 and remains on track to end the week in negative territory. Earlier in the day, monthly PCE inflation data from the US came in line with the market expectation, failing to trigger a reaction.
GBP/USD struggles to find a foothold, trades near 1.3150
GBP/USD stays on the back foot and trades in negative territory at around 1.3150 on Friday. The US Dollar holds its ground following the July PCE inflation data and doesn't allow the pair to stage a rebound heading into the weekend.
Gold retreats toward $2,500 ahead of the weekend
Gold stays under modest bearish pressure and declines toward $2,500 in the American session on Friday. The 10-year US Treasury bond yield edges higher toward 3.9% after US PCE inflation data, causing XAU/USD to stretch lower.
Week ahead – Investors brace for NFP amid Fed rate cut speculation
Here comes another NFP week, with investors eagerly awaiting the results as they try to discern the size and pace of the Fed’s forthcoming rate cuts. The weaker than expected July numbers triggered market turbulence, instilling fears about a potential recession in the US.
Easing Eurozone inflation to back an ECB rate cut in September Premium
Eurostat will publish the preliminary estimate of the August Eurozone Harmonized Index of Consumer Prices on Friday, and the anticipated outcome will back up the case for another European Central Bank interest rate cut when policymakers meet in September.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.