 It was another typical week with market moving headlines flying around. Being two highly anticipated non-events, BoE and ECB didn't disappoint investors by giving nothing new. On the other hand, there was a deep sense of nervousness ahead of Turkish central bank rate decision. The CBRT brought investors back from over-the-top rhetorics of Turkish President and delivered the much needed rate hike. There was news that US and China were going to restart which hammered Dollar and Yen and boosted stocks and Aussie. CPI and PPI misses added more misery to the greenback. But Dollar found "savior" in Trump who fired a tweet to re-escalate the tension. And it's reported that Trump will ignore all the outcries from American businesses and continue with new round of tariffs on China, in parallel with the trade negotiations. Sterling ended the week as the strongest one. The highly uncertain Brexit negotiation now looks relatively much more certain than other developments in the world, like Turkish president Erdogan and Trump's trade war policy. At least, Brexit negotiations are handled by two sides of rational people who want to make a deal. There may be jitters, may still be "substantial" differences, but both sides are optimistic for solutions. Canada ended as the second strongest one, partly supported by WTI oil which breached 70 handle briefly. Australian Dollar was the strongest as it was once boosted by US-China trade optimism and its own employment data. On the other hand, Yen was the weakest one, followed by Dollar and then Swiss Franc. |
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