The European Union (EU) Summit starts today. EU leaders will convey in Brussels to discuss the COVID-19 pandemic, economic recovery, migration and foreign relations. The EU-Turkey relations and modernization of the EU-Turkey Customs Union (CU) will also on the agenda of the summit.
In order to receive supports from EU states for the modernization of the CU, Trade Minister Mehmet Mus held a phone call and video conference with Spanish Industry, Trade and Tourism Minister Maria Reyes Maroto Illera, Minister Delegate for Foreign Trade and Economic Attractiveness of France Franck Riester, Italian Foreign Minister Luigi Di Maio and German Federal Minister of Economy and Energy Peter Altmaier this week. He also paid a visit to Czechia, Hungary and Poland last week.
Trade Minister Mus said he got positive feedbacks from these meetings. He also stressed that relevant ministers of Czechia, Hungary and Poland agree with Turkey, and they will support the country towards modernization of the CU and development of relations with the EU.
Moreover, the U.S. delegation of Pentagon and State Department officials will visit Turkey later this week to discuss the security of the Kabul Airport.
On the economic side, the Central Bank entered talks to open four new swap lines, according to the bank’s Governor Sahap Kavcioglu. In line with expectations, the Bank may increase the amount of the USD 15bn worth swap agreement with Qatar and ink a deal with a new country. The UK, Malaysia, South Korea, Russia and other Asian countries are among the possibilities, according to international news agencies.
Looking at the money under these developments, USD/TRY starts the day at 8.66 after seeing 8.80 at the beginning of the week while EUR/TRY is traded at 10.35. News flow about the swap lines has a positive impact on TRY’s appreciation.
Oil prices increased with expectations that the demand will recover after a sharp decline in the U.S. oil stocks and that the U.S. won’t lift the oil sanctions on Iran anytime soon. Brent crude rose by 0.49% to USD 75.56 per barrel.
Gold prices, meanwhile, started to decline as increase in USD has made the yellow metal more expensive for investors that make transactions in other currencies. Spot gold decreased by 0.1% to USD 1,777 per ounce.
The seasonally adjusted confidence index increased by 6.2% in the services sector, 4.8% in the retail trade sector and 3.6% in the construction sector in June, compared to the previous month, according to the Turkish Statistical Institute (TurkStat).
The Real Sector Confidence Index rose by 2.7 points to 113 points in June, compared to the previous month, according to the Central Bank.
The Capacity Utilization Rate of the Manufacturing Industry (CUR) increased by 1.3 points to 76.6 points in June, compared to the previous month, according to the Central Bank.
The Central Bank will release the Summary of the Monetary Policy Committee meeting held on June 17 (2.00 pm).
The Central Bank and the Banking Regulation and Supervision Agency (BDDK) will release weekly money and banking statistics (2.30 pm).