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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
EMERGING MARKETS
- Turkey leads the way this week in terms for FX appreciation vs the greenback (+3.1%), followed by MXN (+2.3%) & RUB (+1.7%) as US CPI failed to inspire hawkish bets on Fed tightening and US Treasury Yields pulled lower
- TRY caught a bid into the weekend as markets bolstered expectations for Erdogan to roll over on its commitment to keeping Russian S-400 missile systems that have been causing frictions in relations and keeping CAATSA sanctions risks elevated
- While both sides have showed interest in making a deal on the S-400s, concrete signs of a deal are limited outside of broad talk from Defense Min Akar and reports of moving the missiles to NATO's Incirlik air base – which would severely aggravate Russia.
- Turkey has demanded that the US allow it back into the F-35/patriot programme, or else it will continue to buy S-400s – something the US has never intimated at allowing.
- While Erdogan is in a position of weakness going into the meeting with support dwindling, market optimism may be slightly premature with risks to a sharp unwind, should a deal not materialize.
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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