News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Bullish
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • There are many different types of forex orders, which traders use to manage their trades. While these may vary between different brokers, there tends to be several basic FX order types all brokers accept. Learn about different FX order types here: https://t.co/lIJdiz4xSz https://t.co/Xi9QU3ADPF
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out: https://t.co/td5WA4hCZC https://t.co/cQwbeZ6Feq
  • #Oil prices saw a reprieve to the recent selling pressure but remain at risk while below downtrend resistance. Here are the levels that matter on the #WTI technical chart. Get your #commodities update from @MBForex here: https://t.co/CcXsF3JCMH https://t.co/RUmS1cX52v
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/5uSWKoLkd6 https://t.co/boEI8RuQdC
  • The growth-linked New Zealand Dollar may rise on the upcoming #RBNZ rate decision following rosy economic data. However, downside potential in the S&P 500 could offset $NZDUSD gains. Get your #currencies update from @ddubrovskyFX here: https://t.co/LfCe6C6G3P https://t.co/kUeBxxeaEf
  • It was a quiet week in Aussie as $AUDUSD put in its second consecutive week of indecision. But taking a more granular look highlights the potential for a reversal scenario. Get your #currencies update from @JStanleyFX here: https://t.co/PPK20nubAf https://t.co/0nfmRRFNnz
  • The S&P 500 pushed the market's comfort with a head-and-shoulders pattern through Friday's close. What should we look for in technical patterns, overlapping fundamental tides and speculative positioning for the likes of $EURUSD next week? https://www.dailyfx.com/forex/video/daily_news_report/2020/09/19/EURUSD-Pressure-Building-while-Anxious-Traders-Weigh-Did-SP-500-Break.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/lgVJVwi8th
  • Sterling remains trapped by overarching fundamentals drivers and both $GBPUSD and $EURGBP are going to have to wait until the Brexit dust settles. Get your #currencies update from @nickcawley1 here: https://t.co/vF1K1cy0nd https://t.co/NSA7qiQihc
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here:https://t.co/1oygcFMFNs https://t.co/d9EmTOHyTv
  • Traders tend to overcomplicate things when they’re starting out in the forex market. This fact is unfortunate but undeniably true.Simplify your trading strategy with these four indicators here:https://t.co/A4dqGMPylo https://t.co/xqbUxwWgTZ
A Reported Coup in Turkey Sends Lira Tumbling, Threatens Global Volatility

A Reported Coup in Turkey Sends Lira Tumbling, Threatens Global Volatility

2016-07-15 21:39:00
John Kicklighter, Chief Strategist
Share:

Talking Points

  • Reports of a military coup in Turkey to overthrow the government started around 20:00 GMT
  • The Turkish Lira dropped over 5 percent versus the USD shortly after the news
  • Details were slow to be released as the military reportedly took control of state media

See how retail traders are positioning in GBP/USD, the European currencies, majors and broader markets using SSI readings on DailyFX's sentiment page.

During an otherwise quiet close to the week, social media and the markets received a jolt on news that a military coup was underway in Turkey. It has been 19 years since the last military intervention, and this event is being met with the level of astonishment that such a duration would insinuate.

Details were slow to come out of the country, but supposed official statements were quoted in the media from the government and the military. According to the Prime Minister Banali Yildirim, the government was still in control and they intended to resist the overthrow. Accounts of controversial President Recep Tayyip Erdogan’s whereabouts were mixed, but the leader was reportedly free with his guard.

An emailed statement from the military (some reports suggest it was unauthorized) said that it had seized control of the country to restore freedom and democracy. It said that all international agreements will be upheld. Reports suggest the military has taken over state media and a curfew has been announced with martial law in place amid a large military presence throughout the capital.

The reaction from the Turkish Lira was immediate and sharp. Versus the Euro, the currency collapsed 4.9 percent. The preferred liquidity haven US Dollar managed a 6 percent climb versus the TRY at its peak, though its settled the session close at 4.7 percent.

A Reported Coup in Turkey Sends Lira Tumbling, Threatens Global Volatility

For historical context, this is the biggest single-day USD/TRY rally since the height of the Great Financial Crisis back in 2008 – and it would come in the twilight of liquidity for the week. The drain from liquidity makes it particularly difficult for the market to properly adjust for the fluidity of the situation and the full extent of the risk.

A Reported Coup in Turkey Sends Lira Tumbling, Threatens Global Volatility

With the limited time to react, assets with distinct safe haven and risk appetite proclivities reacted sharply to the news. The USD/JPY dropped over 100 pips (1.0 percent). Gold rose approximately $13 to 1,338 (1.0 percent) before the session closed. International markets will have to assess the risk spillover come the open of Asian markets Monday morning.

A Reported Coup in Turkey Sends Lira Tumbling, Threatens Global Volatility

What makes the markets particularly exposed in current conditions is the level of complacency across global markets. The retreat in fear and rebound in capital markets post-Brexit has further bolstered investors confidence against tumultuous seas. This can promote thin liquidity and make the markets particularly exposed with reticence to respond to permanent shifts in sentiment.

A Reported Coup in Turkey Sends Lira Tumbling, Threatens Global Volatility

To receive John’s analysis directly via email, please SIGN UP HERE

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES