Dollar Reigns, Lira Bounces -TRY improved.....>

FOREX: Dollar Reigns, Lira Bounces

-TRY improved sharply Tuesday, extending the week's rally against the USD to as

much as 12%. While news on the ground is little changed, markets appear to be

closing profitable TRY shorts and waiting on the sidelines for clues either

domestically, or from the White House, on what comes next. USD/TRY now eyes a

move below 6.00 to confirm medium-term direction.

-In G10, a modest return of risk appetite saw EUR and GBP gain while the JPY

slipped but all three succumbed to USD demand in NY trading hours that saw both

EUR/USD and GBP/USD touch multi-month (or multi-year) lows. The rise in the DXY

puts the index at its best levels since June last year and has now comfortably

retraced 50% of the 2017 drop.

-Data releases were of little consequence despite UK unemployment rate dropping

to multi-decade lows and below expectations. The on-the-surface strong jobs

numbers merely provided a strong opportunity to re-engage short positions and

push GBP/USD closer to $1.27.

-UK CPI, US retail sales and Industrial Production are on the docket Wednesday.