Forex - Turkey Flows: Lira weakens a bit on Qatar drills, Erdogan comments

 10:30 (GMT) 19 Jun

  [Forex Flows]

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Turkey Flows: Lira weakens a bit on Qatar drills, Erdogan comments (0100-QHFK-C01)

The lira weakened a bit at the start of Monday's session with the USD/TRY briefly climbing to 3.5141. The currency was hurt by worries about Turkey's greater involvement in the Qatar-Gulf crisis after Al Jazeera reported that Turkish forces had participated in joint military drills in Qatar, as well as comments by President Tayyip Erdogan, who said on Saturday that the government would continue to intervene on interest rates to pull them down. We see potential for the lira's further depreciation in the next few days as political and policy uncertainty is likely to continue to weigh, with the USD/TRY possibly exceeding the key 3.5575 resistance level.

Forex - Czech Republic Flows: Koruna weakens a bit in the aftermath of Tomsik comments

 09:28 (GMT) 14 Jun

 [Forex Flows]

The koruna weakened a bit at the beginning of Wednesday's session with the EUR/CZK temporarily rising to 26.189 in the aftermath of the comments by CNB Vice-Governor Vladimir Tomsik, who said that there was need to rush with an interest rate rise. We continue to see little potential for the currency's gains ahead of the likely Fed rate hike on Wednesday, with the EUR/CZK unlikely to break below the 26.10 support level.

Forex - South Africa Flows: Rand depreciates on profit taking

 08:48 (GMT) 06 Jun

 [Forex Flows]

The rand depreciated on profit taking at the start of Tuesday's session with the USD/ZAR briefly rising to 12.7864. The GDP release is due at 10:30 BST and we see data showing growth of 1.2% y/y in Q1 compared to 0.7% y/y in Q4 2016 with a positive contribution from the mining and services sectors offset by a drag from manufacturing. Although the Q1 GDP reading will probably come in slightly above the consensus forecast of 1.1% y/y, we expect the rand to weaken further in the next few sessions with the USD/ZAR potentially breaching the 12.96 resistance level on worries about the possible sovereign rating cuts by Moody's this Friday.

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