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Analysts Not Convinced on Human Rights Reforms; TRY Rebounds From More Enticing Levels

TURKEY
  • USD/TRY saw a robust push lower in yesterday's session, supported by a positive shift in EM risk sentiment and compression in UST yields.
  • TRY outperformance speaks mostly to a reallocation and shift in positing at more attractive valuations ~7.50, with limited local catalysts about to justify such a substantial move.
  • Markets will be watching closely for signs of tangible shifts in Turkey's human rights stance in Erdogan's new reform package, but most local analysts remain sceptical of any real structural changes – positing more window-dressing for the EU/US than anything.
  • Spot USD/TRY is trading marginally higher this morning just back above 7.31 resistance, in line with a firmer greenback.
  • Tensions with Greece remain elevated, but are not a primary price action driver at these levels – focus will returns once exploratory & UN 5+1 Cyprus talks draw closer.
  • Intraday Sup1: 7.3163, Sup2: 7.2285, Res1: 7.3935, Res2: 7.4769
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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