MNI China Daily Summary: Wednesday, July 10

MNI BRIEF: China To Investigate EU Trade Actions

MNI BRIEF: China June CPI Hits Three Month Low

MNI: PBOC Conducts CNY2 Bln Via OMO Weds; Liquidity Unchanged

CHINA PBOC CONDUCTS CNY2 BILLION VIA 7-DAY REVERSE REPOS WEDS

MNI: PBOC Sets Yuan Parity Higher At 7.1342 Weds; -0.53% Y/Y

US EIA: CRUDE OIL STOCKS EX SPR -3.44M TO 445.1M JUL 05 WK

MNI:US MAY WHOLESALE INV 0.6%; SALES 0.4%

MNI: US MBA: MARKET COMPOSITE -0.2% SA THRU JUL 05 WK

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

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Agbal May Opt For Balanced Approach at CBRT; Political Risks Rising for TRY

TURKEY
  • USD/TRY retraces most of an early push lower towards yesterday's low and the 200dma to hold marginally below 7.4117 support turned resistance.
  • DXY opened on the backfoot post Biden's inauguration on broad based stimulus hopes that buoyed risk assets yesterday after a brief mid-session spike in the greenback.
  • Focus today on the CBRT where consensus remains for a hold at 17%, despite dovish overtures from Erdogan.
  • The more balanced approach should be taken well by TRY assets, coupled with a hawkish posturing on sustaining a tightness of policy until price pressures moderate to target.
  • At these levels, the base case remains that the CBRT will await confirmation of above/below target inflation surprises before shifting its stance.
  • Political concerns starting to creep into TRY, however, as Greece approved the extension of maritime boundaries (labelled a cause for war in the 90's), increasing the likelihood of a breakdowns in exploratory talks next week.
  • USD/TRY will still need to negotiate the 200dma (7.3630) to make the next leg lower towards 7.20.
  • Intraday Sup1: 7.3630, Sup2: 7.3483, Sup 3: 7.3109, Res1: 7.4117, Res2: 7.4498
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
BulletEM BulletEmerging Market News
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
BulletEM BulletEmerging Market News

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