The Turkish lira weakened against the US dollar and the euro to kick off the trading week, flirting with 8.19 and 9.65, respectively. Despite piling onto its losses from the last week, the lira’s descent appears to have somewhat eased. Foreign investors have seemingly lost a lot of confidence in Ankara, but the leadership is urging everyone to calm down and adopt a wait-and-see approach.
The euro soared against the dollar amid a series of upbeat macro releases from across the euro area combined with the positive investor sentiment. The EUR/USD currency pair’s rally was also boosted by positive comments from a senior European Central Bank policymaker and the dollar’s weakness.
The New Zealand dollar started the week as the strongest most-traded currency on the Forex market thanks to the upgrade of the nation’s credit rating by Standard & Poor’s. What other factors will be influencing the New Zealand currency and what traders should watch for during the rest of the week?
The Turkish lira weakened against its US peer to kick off the trading week, despite several growth updates from major financial institutions and the continuation of policy normalization. Since November, the lira has strengthened about 25%, but the USD/TRY currency pair has hit the pause button as the new policymakers defended the actions of their predecessors.
The Canadian dollar rallied against its Southern neighbor driven by the recovery in global crude oil prices, which had trended lower earlier. The USD/CAD currency pair fell to new lows as the greenback fell along with declining US Treasury yields as riskier currencies and assets rallied higher.
The Australian dollar had started Tuesday’s trading with gains but has reversed its movement later. The Aussie managed to keep gains only against its US and Canadian counterparts at the time of writing. That is despite positive macroeconomic data and the risk-on market sentiment.
The Russian ruble is weakening against its US counterpart in the middle of the holiday-shortened trading week. After multiple session gains this month, the ruble is trying to end the year on a high note after becoming one of the worst-performing currencies in global foreign exchange markets. Geopolitical tensions and disappointing economic data could serve as additional barriers for the ruble in 2021.
The New Zealand dollar traded largely flat today, though it managed to gain on some of the majors, including the US dollar. The kiwi got a boost from positive domestic macroeconomic data as well as better-than-expected reports in China.
The New Zealand dollar rose against most of its major rivals today. Markets still wait for the outcome of the US presidential election. But while uncertainty surrounding the election results make investors nervous, it seems markets are in a risk-on mode. As for New Zealand’s macroeconomic data released today, it was not bad, though it was not great either.
The South Korean won is recording modest gains against multiple currency rivals on Tuesday as the nation’s economy returned to growth in the third quarter. After enduring the sharpest economic downturn in more than a decade, Seoul was able to resuscitate the economy through a series of COVID-19 stimulus measures and surging exports.
