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FROM ING: TRY: Another FX flash crash.. but...>

FOREX
FOREX: FROM ING: TRY: Another FX flash crash.. but reversal already under way
TRY underwent a text book flash crash overnight as the "bad" lira news that the
US suspended processing new visas in Turkey was worsened by a low liquidity
trading environment. USD/TRY briefly touched the 3.8500 level overnight (in turn
being up more than 6%). As was the case with GBP back in 2016, TRY already
started reversing majority of its losses. Although we fully recognize that the
US
visa situation is not good news for TRY, this on its own is not a strong enough
factor that should (a) cause such a scale of the lira weakness (during the
normal
trading environment); and (b) shouldn't have a long lasting effect on the lira.
We
expect USD/TRY to stabilize below 3.7000 today, converging towards 3.6500.

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