Turkeys Lira Jumps Before FreeTrade Deal with Britain

Dec 29 Reuters Turkeys lira rose for a fifth straight day before a freetrade deal with Britain is signed later in the day, while steps towards bigger U.S. stimulus measures raised hopes for a quicker global recovery next year.

The lira jumped 0.5 after reports that Britain and Turkey were set to sign a deal that replicates the existing trading terms. British trade minister Liz Truss said that she hoped a bespoke deal between the countries could be struck soon.

Most risk assets held ground on Tuesday on signs of expanded U.S. stimulus measures. The Democraticled U.S. House of Representatives voted on Monday to meet President Donald Trumps demand for 2,000 COVID19 relief checks.

Most emergingmarket risk assets are poised to gain as risks around Brexit and U.S. stimulus measures have disappeared, and markets are pretty happy about it, said Stephen Innes, chief global market strategist at Axi.

The factor that seems to hold back most EM currencies in the near term is the demand for dollars as we approach the end of the year.

MSCIs basket of emergingmarket stocks gained 0.5. currencies traded 0.2 higher.

South Africas rand slipped 0.3 as the impact of a stricter lockdown in South Africa announced by President Cyril Ramaphosa weighed on the currency and the stock market locally.

South Africa on Monday tightened COVID19 restrictions, banning alcohol sales and extending a nationwide curfew, as infections passed a million.

Currencies in central Europe made modest gains…

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