Turkish central bank announced into.....>

EURO-DOLLAR: Turkish central bank announced into the European open that banks

would be provided all needed liquidity, collateral deposit limits for TRY

transactions raised and banks able to borrow FX deposits in 1-mo maturity. These

comments headed off any fresh pressure on the TRY into early Europe (as was seen

at Friday's open), which had been under pressure through Asia, with effects

spilling over into EM currencies (especially ZAR and MXN). EUR/USD opened the

week around $1.1380 and was pressed down to $1.1369 in thin pre Tokyo trade.

Japanese reportedly bought EUR/JPY at their open which bounced rate to $1.1412

but move above $1.1410 ran into decent resistance. Rate reversed tack, dropped

down to a fresh low of $1.1365 ahead of the European open. CBRT comments took

rate to $1.1396 but recovery momentum quickly faded as rate settled back around

$1.1380. A light data calendar on the day with attention set squarely on

US/Turkey developments. EUR/USD support $1.1365-50, resistance remains at and

above $1.1410.