Jens Sorensen, Chief Analyst at Danske Bank, noted the Turkish currency remains under pressure.
“The Turkish lira strengthened significantly yesterday after Mehmet Simsek, the Deputy Prime Minister, flagged that the central bank would take action soon as it has done in the past”.
“Furthermore, there were indications that the central bank has been tightening lira liquidity through its repo window. We are sceptical that the central bank would be in a position to react in a forceful way (by raising its benchmark rate by 300bp for example) and continue to see upside risk to our current USD/TRY forecast of 3.60 by mid-March and 3.95 in 12M”.
“However, the signals from Simsek could point to central bank action ahead, which could send the USD/TRY lower towards our forecast path”.
- R3 4.0606
- R2 3.9956
- R1 3.8783
- PP 3.8133
- S1 3.6960
- S2 3.6310
- S3 3.5137
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.