Aside from a couple of small moves, things are pretty quiet in FX on Monday, April 11 as of 8:15 a.m.
The biggest mover is the Turkish lira, which is stronger by 0.7% at 2.8282 per dollar.
The currency’s surge follows news that Turkish Prime Minister Ahmet Davutoglu chose Murat Cetinkaya, a deputy central bank governor, to be the new governor, according to reports from Reuters and Bloomberg. His name will be circulated for approval at a cabinet meeting on Monday, officials told Reuters.
Commenting on the news in a note to clients, Capital Economics’ William Jackson wrote, “As we understand it, his appointment reflects a compromise between Prime Minister Ahmet Davutoglu, who wanted to renew [the current governor’s] term, and President Erdogan, who wanted a governor prepared to loosen monetary conditions more aggressively.”
“Mr. Cetinkaya’s appointment (so long as it is confirmed by the government) is likely to be welcomed by the markets insofar as it suggests that Mr. Erdogan has not entirely got his way,” he added.
As for the rest of the world, things are pretty quiet. Here’s the scoreboard:
- The Japanese yen appreciated 0.1% to 107.96 around 10:49 a.m. ET. It briefly touched as high as 107.63 earlier in the day. Eisuke Sakakibara, the former Finance Ministry official in charge of currency intervention in Japan who was nicknamed “Mr. Yen for his ability to influence the exchange rate in the 1990s,” said the currency could strengthen to 105 in the new few months, and to 100 by year-end, according to Bloomberg.The Chinese yuan slipped 0.1% to 6.4726 per dollar after data showed consumer prices rose 2.3% year-over-year in March, in-line with February, but shy of the 2.4% print that economists were forecasting. Pork prices surged 28.4% YoY and fresh vegetable prices jumped 35.8% YoY.The British pound is up 0.7% at 1.4226. The British Chamber of Commerce’s (BCC) Quarterly Economic Survey recently showed that the UK economy “lost steam” in the first quarter. The euro is little changed at 1.1391 on a quiet day as Greece continues to haggle with its creditors over ahead of their May deadline. “We’ll find a solution in the coming weeks,” German Finance Minister Wolfgang Schaeuble said Sunday in an interview with German public television channel ARD. This solution “has nothing to do with debt forgiveness, but with the fact that Greece needs to do more” to return to a competitive economy, he added. The dollar index is slightly weaker by 0.1% at 94.12 ahead a quiet day. The week’s data starts on Tuesday with import/export prices and the Treasury budget.