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America's Roundup:U.S. dollar touches 13-month high,Gold hits fresh 2017 lows,Wall Street ends down, Oil edges lower as Cushing build adds to demand fears-August 14th,2018

Market Roundup

• Turkey's central bank to provide lira liquidity at 19.25 pct if needed –bankers.

• Turkish lira pulls back from record low, markets rattled.

• Iran's Khamenei rejects Trump offer of talks, chides government over economy.

• FBI agent Strzok, who criticized Trump in text messages, is fired.

• U.S. consumers' 1-year inflation view steady -NY Fed survey.

• NRF lifts 2018 U.S. retail sales forecast on strong job market, tax reform.

• U.S. prosecutors to wrap up Manafort case, may soon go to jury.

• Saudi cuts oil output as OPEC points to 2019 surplus.

• Two Koreas plan third summit of Kim, Moon next month.

• China unloads U.S. soybean cargo amid public worries about cost of trade war.

• China July new loans stronger than expected; money supply picks up.

Looking Ahead- Economic Data (GMT)

• 14 Aug 01:30 Australia Jul NAB Business Conditions, 15 previous

• 14 Aug 01:30 Australia Jul NAB Business Confidence, 6 previous

• 14 Aug 02:00 China Jul Retail Sales y/y, 9.1% forecast, 9.0% previous

• 14 Aug 02:00 China Jul Industrial Output y/y, 6.3% forecast, 6.0% previous

• 14 Aug 02:00 China Jul Urban Investment (ytd) y/y, 6.0% forecast, 6.0% previous

Looking Ahead -Events, Other Releases (GMT)

• 14 Aug 15:00 Federal Reserve Bank of New York issues its Q2 household debt and credit report

Currency Summaries

EUR/USD is likely to find support at 1.1363 levels and currently trading at 1.1406 levels. The pair has made session high at 1.1430 and hit lows at 1.1369 levels. The euro slipped lower against the dollar on Monday as fallout from the Turkish lira's plunge sent the euro to a new 13-month low. Investors have grown increasingly concerned about President Tayyip Erdogan's growing control over the economy and a deepening diplomatic rift with the United States, with those concerns snowballing into a market panic last week. Turkey's lira clawed back some losses on Monday from a record low 7.24 lira per dollar after the country's central bank said it would provide liquidity and cut reserve requirements for banks, but the currency was still down around 10 percent on the day. It has shed more than two-fifths of its value in 2018.Anxiety about Spanish, Italian and other European banks' exposure to Turkey hurt the euro, as did nervousness over political uncertainty in Italy. The dollar, which has rallied since the lira crisis, was little changed. An index that tracks the greenback against a basket of major currencies was steady at 96.367, below its 13-month high of 96.522.The single currency fell to $1.1365, the lowest since July 2017, before buying emerged which pushed it to $1.13406, down 0.1 percent from Friday.

GBP/USD is supported in the range of 1.2700 levels and currently trading at 1.2760 levels. It reached session high at 1.2789 and dropped to session low at 1.2736 levels. Britain's pound declined sharply against the dollar on Monday as stronger dollar and uncertainty over whether Britain would secure a trade deal with the European Union weighed on pound. Sterling lost almost two percent of its value last week because of growing unease among investors that Britain was headed for a future without an established relationship with its largest trading partner, the EU. Warnings this month from Bank of England Governor Mark Carney and trade minister Liam Fox, that the prospect of a no-deal Brexit was growing, triggered the recent slide. On Monday, the British currency traded flat at $1.2778, a touch higher than a 13-month low of $1.2723 plumbed on Friday. Sterling was largely reacting to a broad rally in the dollar, fueled by investors rushing into safer assets on fears of market contagion from a dramatic slide in the Turkish lira. Strong employment or inflation data both reports are due this week are unlikely to help the pound significantly.

USD/CAD is supported at 1.3102 levels and is trading at 1.3136 levels. It has made session high at 1.3132 and lows at 1.3102 levels. The Canadian dollar was little changed against its U.S. counterpart on Monday, bouncing back from its weakest in nearly three weeks when it was hit early in the session as fallout from the Turkish lira's crash rippled through asset markets. World markets shuddered as Turkey's worsening currency crisis persuaded investors to dump equities and emerging markets and flee to safer assets safe-haven currencies like the greenback and the Japanese yen. Canada's currency touched its weakest since July 24 before bouncing back, but its swing was not as volatile as some others. Canada exports many commodities and runs a current account deficit so its economy could be hurt if the flow of trade or capital slows. The currency, which was buffeted last week by a diplomatic row between Saudi Arabia and Canada as well as the threat of emerging market contagion, hit a session low of C$1.3179.Talks between the United States and Mexico over the future of the North American Free Trade Agreement were set to drag into this week, as auto industry officials said on Friday that new sticking points had emerged over President Donald Trump's threat to impose steep automotive tariffs. The Canadian dollar was last trading near flat at C$1.3125 to the greenback.

AUD/USD is supported around 0.7247 levels and currently trading at 0.7271 levels. It hit session high at 0.7289 and made session lows at 0.7259 levels. The Australian dollar declined hit 1-1/2 year lows against its U.S. counterpart on Monday as investors drove to perceived safe haven currencies following a slump in the Turkish lira. The Australian dollar, which is often played as a proxy for emerging market assets, fell to $0.7251, a level not seen since January 2017. The Aussie has already fallen more than 2.1 percent so far this month as investors dump risk-sensitive currencies for the safety of the Japanese yen .Turkey's central bank on Monday said it would provide liquidity and cut reserve requirements for Turkish banks, pushing the lira off record lows. That has partly improved sentiment overall, analysts said. The lira, though, has lost more than 40 percent against the dollar this year amid worries about President Tayyip Erdogan's influence over the economy, his repeated calls for lower interest rates, and deteriorating relations with the United States. Later this week, analysts will focus on Australian data on wages and employment. The second-quarter wage price index is expected to rise 2.1 percent from a year earlier while jobs are seen extending their strong run.

Equities Recap

Banks dragged European shares down on Monday as the Turkish currency crisis shook investor confidence in lenders exposed to the country, while pharmaceuticals group Bayer sank 11 percent after its subsidiary Monsanto lost a key lawsuit.

The UK's benchmark FTSE 100 closed down by 0.2 percent, FTSEurofirst 300 ended the day down by 0.22 percent, Germany's Dax ended down by 0.4 percent, and France’s CAC finished the up by 0.1 percent.

U.S. stocks dropped on Monday as global jitters from Turkey's plummeting currency spread to Wall Street, with the S&P 500 and the Dow falling for the fourth session in a row.

Dow Jones closed down by 0.50 percent, S&P 500 ended down 0.40 percent, Nasdaq finished the day down by 0.50 percent.

Treasuries Recap

U.S. Treasury yields recovered from four-week lows on Monday, with concerns about the global impact of the Turkish crisis easing somewhat after the country's central bank came out with measures to stabilize the plunging lira.

The U.S. 10-year yields rose to 2.878 percent from 2.859 percent late on Friday. Earlier, 10-year yields hit a four-week low of 2.848 percent.

U.S. 30-year yields were also up, at 3.047 percent from Friday's 3.017 percent, after earlier dipping to a four-week trough of 3.011 percent.

On the front end of the curve, U.S. 2-year yields inched up to 2.612 percent , from 2.60 percent on Friday.

Commodities Recap

Gold prices sank below $1,200 per ounce on Monday to their lowest since late January 2017, losing out to U.S. Treasuries and a strong dollar as investors sought refuge from a financial market rout triggered by a crashing Turkish lira.

Spot gold was down 1.42 percent at $1,193.71 at 3:10 p.m. ET (1910 GMT), having earlier dipped to $1,191.35, its lowest since January 2017.

U.S. gold futures for December delivery settled down $20.10, or 1.65 percent, at $1,198.90 per ounce.

Oil prices fell on Monday after data suggested inventories at the U.S. crude delivery hub rose in the latest week, compounding worries that troubled emerging markets and trade tensions will dent the outlook for fuel demand.

Brent crude futures dipped 20 cents, or 0.3 percent, to settle at $72.61 a barrel, while U.S. West Texas Intermediate (WTI) crude declined 43 cents to settle at $67.20 a barrel, with a 0.7 percent loss.

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