Turkey’s currency dropped on Monday after President Recep Tayyip Erdogan’s ruling coalition lost ground in a series of elections on Sunday.
The lira fell 1.5 per cent to TL5.6255 to the dollar in Asia trading on Monday.
Monday’s drop for the lira comes after a torrid week which saw the lira swing sharply, rising as high as TL5.3 on Wednesday before plunging 4 per cent on Thursday. Investors speculated that Turkey’s central bank had burned through its reserves to defend to defend the lira. Data released on Friday showed that Turkey’s central bank reserves dropped by a third last month.
Interesting stats from ML
The sum total of equity and debt as a percentage of GDP peaks around 220% before markets crash. We touched 226% and could be now going down.
GOLD fall last week suggests the uptrend to 1350 is now over and we could be starting a new phase of downtrend.
EURUSD has been on a steady roll down to 1.221. This is important support and we expect to see some bounces here. Things are bad in EU but Kudlow suggested he wants a immediate rate cut in US. That could give some relief to EURUSD.
GBPUSD tested 1.3 last week. The bounce from support has been tepid suggesting that prices could look for deeper levels to bounce. We see GBPUSD dropping to 1.28.
DXY is at key resistance at 97.3. This level has proven to be very difficult in the past and hence expect some minor move down. A clear break above 98 is what will take DXY into clear skies
SPX weekly charts has surprised at the tenacity with which prices have held and rallied in the midst of grave risks. Our bias is to a fast and severe downtrend but equities could stay at 2830 levels for many months and then correct. The china trade deal could give short term momentum to index and take it over 2950
EURUSD was initiated as a short at 1.1332. This was a breakout trade as an important pivot level was broken when 1.1332 and since then prices went over 100 pips down. The system added good returns on the back of this trade.
GOLD BREAKOUT trade
GOLD trade was started at short 1298 and it ran till 1292.
FXCOT Trade performance: Rising powerfully
The equity is rising steadily and some time it rises strongly. This is because when trends appear, the system makes a lot of returns. When trends are absent the system works on SCALPING trades which adds returns steadily.
The system trades EURUSD, GBPUSD, USDJPY, GOLD. All of them have same win rate at 85% and hence speaks of a great system.
Monthly performance: March was strong
March returned +38% returns. One of the best months in the last 24 months of trading. This was as a result of powerful EURUSD trend seen.
One of the best months since 2017, March made over +38% return in one single month.
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