Potential Financial Meltdown in Turkey as Lira Reaches Record Low
Published August 10, 2018
The lira plunged as much as 13.5% to reach a new all-time low of 6.3005 to the dollar. Contagion spread to euro-area lenders as the European Central Bank is becoming concerned about the exposure of some of the region’s banks to Turkey. The weekly gains in the S&P 500 are at risk of being wiped out by what may become a full-scale financial meltdown in Turkey.
The UK economy expanded 0.4% in the second quarter, in line with forecasts. The pound which had hit a one-year low against the dollar earlier, regained some ground to trade at $1.2781.
Canada could soon be returning to the NAFTA talks as the US and Mexico approach agreement on a deal over cars. When asked Thursday whether negotiations next week would include Canada, Mexico’s Economy Minister Guajardo said “hopefully” once the US and Mexico advance their talks.
US inflation is expected to hold at 2.9% in July when the data is released at 8:30 a.m. with core inflation likely to repeat June’s 2.3%. The Federal Reserve will monitor the data closely, as the readings are a preferred inflation gauge.