TRY volatility at extremes - The broad........>

FOREX: TRY volatility at extremes

- The broad based risk-off theme spilled over into NY with TRY at the forefront

of FX volatility. USDTRY spiked to Try6.30 in early Europe as markets reacted to

a report in the FT suggesting ECB concern over EU Bank's exposure to Turkey.

Turkey's President made remarks to convert FX savings to Lira, but this only

backfired after President Trump authorised a doubling of tariffs on steel and

aluminium, sending the cross to record highs of Try6.8703.

- EUR and GBP were particularly hit hard with added weight via JPY crosses and

continued the recent downtrend. EURUSD breached neckline support/long-term 50%

fibo to $1.1400, while GBPUSD slipped to $1.2723.

- USDJPY focus is on the 55-dma at Y110.76 and will be monitored on a closing

basis today. US Headline & Core CPI came in-line with expectations.

- Canadian jobs data was mixed, net change jobs improved to +54.1k and a fall in

the unemployment rate to 5.8% briefly pressured to C$1.3042, before soft hourly

earnings pared losses. The stronger USD theme comfortably held above C$1.3100.

- SEK remains bottom of the pile (-1.5%) following a fall in services inflation.