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Sanctions Risks Keep TRY Assets Choppy Ahead Of EU Summit

TURKEY
  • Local & USD rates continue to trade choppily ahead of the EU summit with the local 5Y reversing losses made in yesterday's session to push -34bp lower at the open.
  • Expect USD rates to continue to be favoured as volatility persists.
  • USD/TRY pares an early move higher towards 7.85 to pull back towards 7.80 support.
  • Limited data on the agenda means the cross will remain sensitive to global factors and sanctions-related headline risks.
  • Local analysts still expecting sanctions to not be especially harsh due to mutual interests.
  • Comments from the likes of Germany, as the key holdout on sanctions, should hold asymmetric value in determining severity.
  • Cross remains in a tight range, 7.75-7.745 next downside support and bear trigger.
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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