USD/TRY: The pace of Lira depreciation will slow in the year ahead – MUFG

FXStreet Insights Team FXStreet

The Turkish Lira (TRY) has continued to weaken at the start of this year at a similar pace to the end of last year by an annualized rate of around -28% against the US Dollar (USD) between January and February. Economists at MUFG Bank analyze Lira’s outlook.

Upcoming local election results unlikely to alter Erdogan’s tolerance for higher rates

The pace of Lira depreciation will slow in the year ahead based on the assumption that the CBRT sticks to tighter policy.

Economic growth has started to slow in response to higher rates. We are not expecting the upcoming local election results in March to alter President Erdogan’s tolerance for higher rates.

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD stays below 1.1750 ahead of US PMI data

EUR/USD trades marginally lower on the day below 1.1750 but clings to strong weekly gains. The data from Germany and the Eurozone showed that the business activity in private sector expanded at a modest pace in January, helping the Euro hold its ground. In the second half of the day, US PMI data will be watched closely.