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Lira Depreciation Spiral Takes USD/TRY to 16.00

TURKEY
  • USD/TRY trades +0.64% higher this morning, eying 16.00 to the topside as the greenback finds an early bid.
  • The cross surged +2% higher yesterday as local risks, combined with Turkey-NATO frictions amplified lira weakness.
  • The Cavusoglu-Blinken meeting today will be key for Turkey in terms of the F-16 deal and frictions with NATO over Nordic countries’ accession plans. Although a deal over F-16s would be a positive step in Turkey-US relations, it would not be enough to see CAATSA sanctions removed without Turkey giving up its Russian S-400s.
  • For now, momentum in USD/TRY remains firmly higher as the cross eyes 16.00, 16.50 & 17.00 as the next stops on the runaway train. Intraday Sup1: 15.7922, Sup2: 15.715
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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