12 February, 2019
USD/TRY was trading stable this morning, remaining on the upside and above 5.26. The dollar extended Monday’s gains, as concerns about a trade deal with China and an economic slowdown in Europe sent investors into the safe-haven currency. China struck an upbeat note on Monday as trade talks resumed with the United States, but also expressed anger at a U.S. Navy mission through the disputed South China Sea, casting a shadow over the prospect for improved Beijing-Washington ties. The Turkish lira, on the other hand, has been lately under pressure after Turkish President Recep Tayyip Erdogan calls for a parliamentary vote to take over the country's largest listed lender, Turkiye Is Bankasi. The bank has said in the past that any move to nationalize it would be a financial crime. The country's opposition party, CHP, holds a 28% stake in Isbank and has resisted Erdogan's call to give up its stake in the lender and its four seats on the board. Later this afternoon, US JOLTs Job Openings for December will be released. Also this afternoon, Fed Chair Jerome Powell will speak on “Economic Development in High Poverty Rural Communities” at the Hope Enterprise Corporation Rural Policy Forum.