Turkish Vulnerabilities Back Under The Spotlight
Turkish banks' reduced level of liquid FX assets and growing deposit dollarisation means that the next time Turkey faces a crisis, banks are likely to fare a lot worse. There remains a risk that unorthodox monetary policy could trigger a banking crisis, not just deeper distress in firms with FX debt.
USD Bears Becoming More Vocal
Though the broader Dollar has been showing some resilience in the most recent sessions (on the firmer than forecast US core CPI at 2.1% y/y and less than dovish Fed speak from Barkin and Bostic) we're hearing some pretty bearish stuff from elsewhere...
Countertrend And Earnings Season Cometh
A back-up in rates has sent yields higher in several jurisdictions this last week. This without much in the way of improving macro data and CBs firmly on the easing path.
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