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​JP Morgan Remain Long USD/TRY Following Yesterday’s Move

TURKEY
  • JPM write that despite the sharp move higher, there is still pent-up demand from local corporates that cannot be fulfilled in the current market dynamics. Given the fast depletion of FX reserves over the past couple of months, there was always limited room for state banks to sell USD/TRY post elections.
  • Although state banks are once again active overnight, the move yesterday definitely shows their intention/tolerance for weaker TRY at least in the very short term. JPM remain long USD/TRY.

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