Forex Daily Recap – Turkish Lira Plunged Amid Political Turmoil Pushing the USD/TRY to 2019 Highs

AUD/USD

The Aussie pair rang the Tuesday morning bell near 0.6993 levels. The pair displayed a decent performance in the early hours after some positive AUD-specific events.  The March MoM AUD Retail Sales came around 0.1 percent higher than the estimates near 0.2 percent. Also, the March AUD Trade Balance reported a figure around 4949 million over expectation of 4300 million. The investors witnessed a whopping 0.76 percent in the Asian trading session post such positive results.

However, the AUD/USD pair slid back to 0.6999 levels in the next session after the RBA rate announcement. The market had expected the Central Bank to report a rate cut this time. Somehow, the RBA kept the interest rates unchanged at 1.5 percent shattering the investor hopes. At around 17:00 GMT, the pair was trading near 0.7006 levels.

EUR/USD

The Fiber managed to keep up near 1.1200 levels since last few sessions. However, the pair lost hold of high levels today. The EUR/USD had tested near the day’s high near 1.1219 levels. Laterwards, the pair fell amid poor German Factory Order figures. The March MoM German Factory Orders recorded near 0.6 percent over the estimates of 1.5 percent. Adding to this negative sentiment, France March Trade Balance reported a negative €5.3B over expectation of negative €4.5B.

Meanwhile, France March Current Account came as negative €1.3B, as to the consensus estimate of negative €0.97B. The primary rationale behind the Fiber plunge was the political turmoil prevailing in Turkey. During the day, the EUR/USD pair lost almost 0.46 percent of the gains accumulated since last few sessions.

USD/TRY

The Turkish Lira had extended its losses into today’s session amid Istanbul political chaos. During the day, the USD/TRY pair made a substantial 1.76 percent marking the year’s high near 6.2000 levels. The Lira investors went unnerved, calling for a massive sell-off after the Turkish government announced for re-election on June 23. The Opposition party had won in the local elections conducted on March 31.

Speculations suggested that the Turkish President Erdoğan is trying to misuse his powers to bring back control over Istanbul. The citizens protested against the government and its decision. The fall in the Turkish Lira had significantly benefitted the earlier-falling US Dollar Index. The USD/TRY pair had remained fragile to the last Central Bank Interest Rate meeting. The Bank had decided to keep the rates unchanged at 24.00 percent. This move was initiated to compete against the rising US interest rates and heavy debt pressures on the country.

US Dollar Index

The Greenback measured against the six major rival currencies weighed higher today after slumping yesterday. The Index was pretty down amid Trump threats to impose more tariffs on Chinese goods. However, the Index has successfully managed to rebound from its previous day losses. The Index jumped back near 97.70 levels from where it had fallen the last day. During the day, the Green Money made a swing high of around 0.32 percent. The primary rival (EUR/USD) which constitutes almost 50 percent of the Index dropped over Greenback rise. Quite notably, most of the competitors computed against the greenback remained lower today. The AUD/USD and USD/TRY remained among such tumbling currency pairs.