Published: 17 Dec at 3 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, USA, Germany, Turkey,
Although the financial world is looking to the US and the upcoming Federal Open Market Committee announcement, other news has been inspiring currency movement over the last few hours.
For example, the Euro advanced on all of its most traded rivals as a result of impressive ZEW economic sentiment surveys for Germany
and the Eurozone.
The reports showed that economic sentiment in Germany jumped to a seven-year high in November amid signs that the Eurozoneâ€™s largest economy continues to drive economic momentum in the currency bloc.
Meanwhile, the Pound shed recent gains against the US Dollar as UK inflation unexpectedly slowed to a four-year low.
Today the Turkish Lira also experienced notable movement, sliding by the most for nearly a week as media reported that Turkish officials were involved in a corruption investigation.
The Lira slid by 0.7 per cent against the US Dollar and declined against several of its other main rivals as the Chief Executive Office of the Halkbank and individuals associated with property developer Emlak Konut were named as among the arrested.
As one locally-based industry expert noted; â€˜When Halkbank and Emlak Konut names got involved in the operation we saw the Lira coming above 2.03 against the Dollar. Dollar demand from foreigners selling these shares triggered the move both in the Lira and bonds.â€™
Similarly, Figen Ozavci commented; â€˜Investors are waiting to understand why these people have been detained, whatâ€™s this corruption about and, more importantly, whether the raids will continue.â€™
Tomorrow additional Lira movement could occur in response to a domestic business confidence report.
Economists are expecting that sentiment declined in December, dropping from 104.5 in November to 102.95 this month.
Thursdayâ€™s Turkish consumer confidence report is also expected to show a decline.
Domestic pressures are piling on the Lira and the emerging-market currency could post further losses if the Federal Open Market Committee opts to trim asset purchases by more than the five billion dollars estimated.
The â€˜Greenbackâ€™ was little changed following the release of US inflation data. The cost of living in the US was shown to be unchanged last month from October, something which might deter the Fed from trimming the level of asset purchases.
The Lira is currently trading against the US Dollar in the region of 2.0390
As of Tuesday, 17th December 2013, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.182, GBP USD exchange rate was 1.6276,