FOREX-Euro gains on more positive global outlook; The Turkish lira holds its gains

EPissing, the Aussie recovers, the dollar goes down again

Turkish lira stabilizes in volatile week

The market is evolving slowly as the volumes become scarce before the holidays

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LONDON, December 22 (Reuters)The euro, Australian dollar and other currencies rallied against the US dollar as traders turned more positive about the economic outlook on Wednesday, even as Omicron business soared and investors braced for more. volatility.

The Turkish lira has stabilized and maintained its recent gains after a roller coaster ride in which it fell to a record low due to new measures by President Tayyip Erdogan to shield Turks’ economies from volatility.

Currency movements were largely limited, with lower trading volumes leading up to the holiday season.

After weakening earlier in the session, the euro was last up 0.1% to $ 1.13. EUR = EBS.

Australian dollar AUD = D3 lost up to 0.4% to $ 0.7121 and the New Zealand dollar NZD = D3 up to $ 0.6742, but both edged up at 11:15 a.m. GMT, supported by improving risk sentiment as oil and global equities advanced. MKTS / GLOB

The British pound gained 0.3% to $ 1.3316 GBP = D3, despite data showing that the UK economy grew more slowly than previously thought during the July-September period.

The dollar index = USD edged down 0.1% to 96.317, although it was still well within its recent ranges.

The weeks on either side of Christmas are generally low volatility for currencies and other asset classes, ING analysts said, although “this year some seasonal trends will be mixed with the Omicron variant threatening to impose new ones. restrictions and the markets are still dealing with a full week of key central bank decisions. “

Omicron continues to keep merchants on the lookout and infections are on the rise in Europe, the United States and Asia, forcing countries around the world to consider new travel restrictions and reimpose quarantine periods for inbound visitors .

But markets are increasingly confident that Omicron’s economic benefits will be limited.

In emerging markets, the Turkish lira TRY = D3 stabilized after closing 6% higher on Tuesday, after falling 8.6% and rising 18.5%. It was last down around 1.4% to 12.57 per dollar, but held onto most of its gains after the government decided to protect deposits.

“The political action has been described as raising rates for retail deposits. However, it will shift currency risks onto the government’s balance sheet,” said Lee Hardman, analyst at MUFG.

He added that the plans were unlikely to “give the government much time before the pound resumes its decline, unless there is a fundamental shift to tighter political parameters to restore stability. “.

Global exchange rates

(Reporting by Tommy Wilkes; Editing by Frank Jack Daniel and Alexander Smith)

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