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14 Aug 2015
Turkish lira under political pressure – BTMU
FXStreet (Edinburgh) - Lee Hardman, Currency Analyst at BTMU, assessed the current complicated scenario for the Turkish currency.
Key Quotes
“Emerging market currencies continue to remain under downward pressure in the current environment”.
“Weakness in the Turkish lira has accelerated following media reports that coalition talks between the Justice and Development Party (AKP) and the Republican People’s Party (CHP) have failed”.
“Prime Minister Davutoglu stated that “we reached an understanding that there were no grounds for a joint government” citing deep differences in policy including education and foreign policy. He stated that a snap election appeared very likely which “we might say it’s now become the only possibility”.
“The extended period of political uncertainty will provide a further headwind for the lira heading into year end. The lira is likely to be even more vulnerable to the downside ahead of the first Fed rate hike”.
“It supports our view that USD/TRY will continue to rise towards the 3.0000-level by year end. Cemil Ertem, chief adviser to President Erdogan has been reported tweeting today that that the lira will be “competitive” at the 3.000-level against the US dollar”.
Key Quotes
“Emerging market currencies continue to remain under downward pressure in the current environment”.
“Weakness in the Turkish lira has accelerated following media reports that coalition talks between the Justice and Development Party (AKP) and the Republican People’s Party (CHP) have failed”.
“Prime Minister Davutoglu stated that “we reached an understanding that there were no grounds for a joint government” citing deep differences in policy including education and foreign policy. He stated that a snap election appeared very likely which “we might say it’s now become the only possibility”.
“The extended period of political uncertainty will provide a further headwind for the lira heading into year end. The lira is likely to be even more vulnerable to the downside ahead of the first Fed rate hike”.
“It supports our view that USD/TRY will continue to rise towards the 3.0000-level by year end. Cemil Ertem, chief adviser to President Erdogan has been reported tweeting today that that the lira will be “competitive” at the 3.000-level against the US dollar”.