Interest rate differentials, reserve levels, trade imbalances, + a lot, lot more. @Nick Correa and I try to make sense of the biggest, most majestic (and mysterious) market of them all: currencies.
@Christopher Moir @Gerald A Olchowy @John Fadool @Matt Daniell @Seth Dingle @Sam Colt @Tom Emmet
I like the "Breakdown" - (the bloopers reel at the end are pretty funny) - be curious to watch the price of gold and the TRY now in light of what John Floyd expects and Weston's post last week some time.
If there is a shift in the TRY due to a recent policy change, it should impact any previous correlation to gold?
gold plays a part but it's mainly due to the extreme rate hike (at least that is the prevailing narrative):
https://www.aljazeera.com/economy/2020/11/19/turkeys-cenbank-decisively-spikes-key-interest-rate-to-15#:~:text=Turkey's%20central%20bank%20ramped%20up,heralded%20a%20new%20economic%20approach.