Turkey dominated headlines over the bank holiday weekend as Turkey’s President Recep Tayyip Erdogan won the closely watched referendum. Turkish voters approved a draft constitution on Sunday, which will give Erdogan increased powers. In a referendum which has split the nation, the plan will see Turkey change from a parliamentary to a presidential republic. President Erdogan will be given powers, which include him becoming the head of the executives, power to choose many of the senior judges and enact certain laws by decree. As a result, the Lira rose against both the Dollar and Euro.
In other news, Trump’s administration continue to encourage China to take action against North Korea. North Korea over the weekend defied Trump with another unsuccessful missile test. According to senior officials in Pyongyang, North Korea will continue to test ballistic missiles, despite international condemnation and growing military tensions with the US. If tensions continue to expand with North Korea and the world, we could see strong flows into the safe haven currencies.
Data is relatively light today, with the only high tier data being released from the US. The Industrial Production figure, gives market an insight into the US secondary sector which has struggled recently. Industrial Production is forecast at 0.5% Markets will be anxious to see if this high tier reading can buck the recent trend.