19 Aug 2015
Turkish lira to extend its downtrend – TDS
FXStreet (Edinburgh) - According to Cristian Maggio, Head of EM Strategy at TD Securities, TRY s poised for further downside in the next months.
Key Quotes
“We see USDTRY moving to 3.30/3.35 in 1-10 months, after breaching the 3.00 handle”.
“However, we will formally amend our old FX forecasts (where you can still see the peak a tad below 3) only when we know exactly when the snap election is set for”.
“The CBRT may have to step in and hike 300-400bp in the meantime, which may succeed to stabilize the currency, but will leave deep wounds on many bondholders”.
Key Quotes
“We see USDTRY moving to 3.30/3.35 in 1-10 months, after breaching the 3.00 handle”.
“However, we will formally amend our old FX forecasts (where you can still see the peak a tad below 3) only when we know exactly when the snap election is set for”.
“The CBRT may have to step in and hike 300-400bp in the meantime, which may succeed to stabilize the currency, but will leave deep wounds on many bondholders”.