Market movers today
The development in Turkey will continue to drive financial markets today, see more below and Flash Comment - Turkey: Erdogan chooses the confrontation path - TRY collapses , 10 August 2018.
It will be quiet on the data front today with no big releases. Key global releases this week are US retail sales and Chinese data for industrial production, investments and retail sales. Later this week, Brexit will also be in focus again, as talks between the EU and the UK resume in Brussels. For more on upcoming releases see the market movers section in Weekly Focus .
In Sweden, housing price data is due today (see next page). The key event in the Scandies this week is the Norges Bank meeting on Thursday (see preview ).
Selected market news
Stock markets and bond yields have continued to trend lower as the Turkish lira saw a savage opening in the Asian session last night. The USD/TRY crossed the 7.23 level before the TRY rebounded back to below 7.00 against the USD in a thin market. On Sunday, President Erdogan urged Turkish businesses to stay away from FX purchases and to support the TRY. The massive sell-off in the TRY started last Friday, when in his speech Erdogan spooked investors by choosing to continue his path of confrontation with the US and calling for Turks to hand in their US dollar, EUR and gold holdings. Shortly after, TRY's turmoil deepened on President Trump's tweet, which mentioned a doubling of tariffs on metals, citing bad relations with Turkey.
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