On Tuesday, the 14th of August, trading on the global foreign exchange market is relatively calm. The downward correction in the US dollar/Turkish lira pair positively affected the currencies of emerging markets.
The lira is 9% up from 5.28 to 7.08. The increasing exchange rate could cause the Central Bank of Turkey to increase currency liquidity in the banking sector. On the backdrop of unresolved internal problems in the country, the strengthening of the national currency is temporary, and should be viewed as a correctional movement, which traders in favour of increasing long positions on the dollar will take advantage of.
During the European session, the euro fell to 1.1384. It currently sits at 1.1389. The euro is losing ground despite strong data from the Centre for European Economic Research (ZEW) and Eurozone GDP. I believe that the uncertainty around the situation in Turkey will continue to exert pressure on the single currency. During the American session, I expect the euro to fall to 1.1351. This is an interim goal. The road to 1.1325 is open to bears.