Turkish lira shakes markets, focus shifts to Powell

This is what you need to know to trade today Monday, March 22:

The US dollar is off the highs as yields recede ahead of a speech by Fed Chairman Powell. The firing of Turkey’s central bank governor sparked a sell off of the lira and rocked other emerging market currencies . The EU is close to blocking vaccine exports to the UK amid the increase in the number of cases.

Yields: Yields on 10-year US Treasuries are hovering around 1.70%, allowing the dollar to slide back from highs and stocks to stabilize. According to the news, President Joe Biden is considering a new economic plan that includes spending on infrastructure and also tax increases, with the latter worrying investors.

Jerome Powell, Chairman of the Federal Reserve, will speak at a conference in the first of three public appearances. It can shed light on current conditions and additional support for the economy. About a quarter of all Americans have already received a dose of the COVID-19 vaccine.

Lira: Turkish President Recep Tayyip ErdoÄŸan has removed the central bank governor, the third change in 21 months, after a significant rate hike. Markets reacted with a 15% selloff in the lira. The currency is on the mend as the new governor and finance minister promise stable monetary policy.

Other emerging market currencies They have also suffered volatility amid turmoil in the Turkish lira and as coronavirus cases rise. Brazil and India have seen an increase in infections.

The EU is considering blocking exports of AstraZeneca vaccines to the UKas Europeans are increasingly frustrated with the current crisis and increasing cases of infections. The European regulator confirmed that this vaccine is safe and effective last week.

The German Chancellor, Angela Merkel, is considering a four-week extension of the national lockdown and around 20 million French citizens are subject to new restrictions. The EUR/USD it’s struggling to stay at 1.19.

The GBP/USD it is trading around 1.39, while Britain has already vaccinated about 50% of adults with one dose. The administration of the second dose on time is in doubt amid supply problems from the EU and also from India.

The Bitcoin it is trading above $ 58,000, rebounding from lower levels after another relatively active weekend. Ethereum is above $ 1,800 while XRP is trading below $ 0.45.

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