Risk rises over fears of trade tensions

• Developments over the weekend increased fears over higher trade tensions.
• According to media, US authorities could be preparing rules that would forbid companies with a 25%+ Chinese ownership to take over US companies which are in “industrial significant technologies”.
• US president Trump’s threats of imposing a 20% tariff on EU cars and EU answering that it will retaliate also heightened uncertainty.
• The US Dollar weakened against JPY and should there be further escalation we could see it weakening even further.

Erdogan’s win supports TRY

• Erdogan seems to be winning the elections in Turkey according to polls however other parties did not accept the results yet.
• The win is expected to give Erdogan sweeping new powers as the president of Turkey in the internal political front.
• On the monetary front it could be the case that he may try to intervene to CBT’s decisions.
• TRY strengthened, as political uncertainty was removed with the result and could strengthen further on positive headlines.

IronFX Daily Report ‘June 25th’