TRY finds some consolidation, markets.........>

FOREX: TRY finds some consolidation, markets remain on headline watch

- Gyrations in TRY spilled over into Europe after touching record highs of

Try7.2362 overnight. The Turkish Central bank earlier announced that banks would

be provided all needed liquidity, collateral deposit limits raised and banks

able to borrow FX deposits in 1-mo maturity. USDTRY eased on react to Try6.4469,

but was quick to pare gains, later settling around Try6.80-6.90.

- The USD holds firm against most majors with exception to the JPY & CHF. EURUSD

failed to gain traction above $1.1400, keeping the downside in check with focus

on the ytd low at $1.1365. GBPUSD holds in the middle of its $1.2724-82 range.

- AUD is the weakest in G10 FX with losses attributed to persistent AUDJPY sales

and a break of the key Y80.00 level. AUDUSD touched fresh YTD lows of $0.7251,

before an improving AUDJPY cushioned falls.

- EM FX remains on the defensive following renewed Turkey concerns. ZAR is the

second worst performing ccy on fears of contagion. USDZAR was down a near 10% at

Zar15.5517, but has since stabilised around Zar14.493.

- DXY comfortably holds above 96.30, while gold touches ytd lows of $1203.55.